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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.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 = \(20 - 18.66 = 1.34\)
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