7
practice examMultiple Choice

Practice Exam

Question 7 • Precalculus

Carissa is budgeting for her next semester at college. She spent 50 dollars on gas this month. Economists are predicting gas prices to rise 8 percent per month for the next 6 months. How much should she budget for gas if classes start next month and are 4 months long?

Answer
A
243 point 3 3 dollars
B
240 point 0 0 dollars
C
204 point 0 0 dollars
D
210 point 8 0 dollars

Explanation

Gas costs rise by 8% each month, so for the four months of classes the estimated costs are $50(1.08), $50(1.08)^2, $50(1.08)^3, and $50(1.08)^4. Adding these gives about $243.33, so Carissa should budget $243.33.

AI-written and checked against the verified answer.

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