If the Jones family paid an average of $75.72 per month for electricity last year and the rate rises 4.0% each year, what will they pay after 5 years? Round your answer to two decimal places.

Question

If the Jones family paid an average of $75.72 per month for electricity last year and the rate rises 4.0% each year, what will they pay after 5 years? Round your answer to two decimal places. ​

Quizplus · Accepted Answer

The correct answer is D.The rate rises 4.0% each year, so the rate after 5 years will be 1.04^5 = 1.2166529 times the original rate. Therefore, the Jones family will pay 1.2166529 * $75.72 = $92.12 per month after 5 years.

If the Jones Family Paid an Average of $75