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 compound - growth formula

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

Step2: Convert the percentage to a decimal

The growth rate $r = 8%=0.08$, the initial amount $P = 50700$, and the number of years $t = 11$.

Step3: 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: $A = 50700\times2.3316389$. $A\approx118214.09$.

Answer:

$118214.09$