SOLUTION: Every year, the cost of electricity increases by 4%. If electricity currently costs 30 pesos per megawatt, what will the per-megawatt cost be in 5 years? Round off your answer to t

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Question 1099902: Every year, the cost of electricity increases by 4%. If electricity currently costs 30 pesos per megawatt, what will the per-megawatt cost be in 5 years? Round off your answer to the nearest whole number.
Found 2 solutions by josmiceli, KMST:
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +C+ = cost after +t+ years
Let +C%5B0%5D+ = cost at +t+=+0+ years
----------------------------------
+C%5B0%5D+=+30+
+t+=+5+
+C+=+C%5B0%5D%2A%28+1+%2B+.04+%29%5Et+
+C+=+30%2A1.04%5E5+
+C+=+30%2A1.2167+
+C+=+36.4996
The cost in 5 yrs will be 36.5 pesos,
rounded off 37 pesos

Answer by KMST(5328) About Me  (Show Source):
You can put this solution on YOUR website!
NOTE:
Watts and megawatts are measures of power (the rate/speed at which energy is used or delivered).
That means that people are billed for the amount of energy used in kilowatt%2Ahour . That is power multiplied by time.
My electric bill is in kilowatt-hour in the USA,
y era en kilovatios-hora cuando yo vivía en Sudámerica.

An increase of 4% per year meas that as a 4% of the previous cost is added,
the new cost becomes 100% + 4% = 104% of what it was before.
In other words, cost gets multiplied times 104%2F100=1.04 every year.
Starting at 30+pesos per unit of energy,
after 5 years it would be
.
I would round that to 36pesos , because 36.499587072 is less than 36.50.