If the average income in Canada maintains a 2.5 percent annual growth rate, how much will the YMPE be in four years? YMPE is $43 700.

Question

Quizplus · Accepted Answer

To calculate the YMPE in four years, we need to use the formula:

YMPE in four years = YMPE * (1 + annual growth rate) ^ number of years

Plugging in the values, we get:

YMPE in four years = $43,700 * (1 + 0.025) ^ 4 
YMPE in four years = $48,236.07

Therefore, the best choice is (C) $48,236.

If the Average Income in Canada Maintains a 2