A government program that currently costs taxpayers $3.5 billion per year is cut back by 40 percent per year. Compute the budget after the fourth year. Round your answer to the nearest integer.
A) $1,433,600,000
B) $165,995,062
C) $89,600,000
D) $1,012,217,284
E) $453,600,000

Question

Quizplus · Accepted Answer

The program costs $3.5 billion initially. Each year, it is reduced by 40%, so it retains 60% of its cost from the previous year. After four years, the cost is $3.5 billion * (0.6)^4 = $453,600,000.

A Government Program That Currently Costs Taxpayers $3