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If the tax in CA increases by 20% each year for the next 4 y

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If the tax in CA increases by 20% each year for the next 4 y [#permalink] New post 27 Jul 2018, 09:00
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Question Stats:

50% (02:01) correct 50% (01:59) wrong based on 6 sessions
Attachment:
electricity.jpg
electricity.jpg [ 31.28 KiB | Viewed 171 times ]


If the tax in CA increases by 20% each year for the next 4 years, and the energy cost in CA remains the same each year for the next 4 years, what will be the positive difference, in dollars, between the CA tax and the CA energy cost in 4 years?

A. 0

B. 1.34

C. 2.59

D. 3.12

E. It cannot be determined from the information given

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[Reveal] Spoiler: OA

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Re: If the tax in CA increases by 20% each year for the next 4 y [#permalink] New post 27 Jul 2018, 10:37
Carcass wrote:
Attachment:
electricity.jpg


If the tax in CA increases by 20% each year for the next 4 years, and the energy cost in CA remains the same each year for the next 4 years, what will be the positive difference, in dollars, between the CA tax and the CA energy cost in 4 years?

A. 0

B. 1.34

C. 2.59

D. 3.12

E. It cannot be determined from the information given

Kudos for R.A.E.


From the graph the Tax in CA = 9 and the energy cost = 20

Now tax in CA at the end of 4th year = \(9(1 + \frac{20}{100})^4 = 9 * (1.2 * 1.2 * 1.2 * 1.2) = 9 * 1.44 * 1.44 = 18.66\)

so the positive difference between the energy cost and the tax in dollars = \(20 - 18.66 = 1.34\)

I.e option B
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Re: If the tax in CA increases by 20% each year for the next 4 y   [#permalink] 27 Jul 2018, 10:37
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If the tax in CA increases by 20% each year for the next 4 y

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