If the Jones family's income is $54,000 this year and rises at a rate of 4.5% each year, what will be their income after 7 years? Round to the nearest cent.

Question

If the Jones family's income is $54,000 this year and rises at a rate of 4.5% each year, what will be their income after 7 years? Round to the nearest cent. ​

Quizplus · Accepted Answer

To find the income after 7 years, we need to use the formula:
future income = current income * (1 + rate)^time
Plugging in the given values:
future income = $54,000 * (1 + 0.045)^7
future income = $73,486.54
Rounding to the nearest cent, we get the answer as C.

If the Jones Family's Income Is $54,000 This Year and Rises