Solve.
18. Miguel paid $9600 rent for his apartment the first year. Every year for
the next 3 years the rent increased 5%.
a. How much rent did he pay in the fourth year?
b. How much rent did he pay altogether in the 4 years?

Answer:

$11,113.20

$41,377.20

Step-by-step explanation:

The equation that would be used to represent the increase in rent every month is :

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

Rent paid in the first year = 9600

Rent paid in the second year = 9600 x (1.05) = 10,080

Rent paid in the third year = 9600 x (1.05)^2 = 10,584

Rent paid in the fourth year = 9600 x (1.05)^3 = 11,113.20

Rent paid in4 years is the sum of the rents paid each year :

9600 + 10,080 + 10,584 + 11,113.20 = $41,377.2

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