kenny lives in greenpoint, where the cost of living increases by 8% every year. if kenny spends $50,700 this…

kenny lives in greenpoint, where the cost of living increases by 8% every year. if kenny spends $50,700 this year, how much can he expect to spend 11 years from now to maintain the same standard of living? if necessary, round your answer to the nearest cent. $

kenny lives in greenpoint, where the cost of living increases by 8% every year. if kenny spends $50,700 this year, how much can he expect to spend 11 years from now to maintain the same standard of living? if necessary, round your answer to the nearest cent. $

Answer

Explanation:

Step1: Identify the formula

The formula for compound - growth is $A = P(1 + r)^t$, where $P$ is the initial amount, $r$ is the annual growth rate as a decimal, and $t$ is the number of years. Here, $P=$50700$, $r = 0.08$ (since $8%=0.08$), and $t = 11$.

Step2: Substitute the values into the formula

$A=50700\times(1 + 0.08)^{11}$. First, calculate $(1 + 0.08)^{11}$. Using a calculator, $(1.08)^{11}\approx2.3316389$. Then, multiply by the initial amount: $A = 50700\times2.3316389$. $A=50700\times2.3316389 = 118214.09223$.

Step3: Round to the nearest cent

Rounding $118214.09223$ to the nearest cent gives $A\approx$118214.09$.

Answer:

$118214.09$