Answer:
$20*(1+10%)^n
$26.62
Step-by-step explanation:
The expression to use in dete $20*(1+10%)^nrmine the cost of the subscription in n years is given below:
=$20*(1+10%)^n
The expected cost at end of 3 years is computed below:
fv=pv*(1+r)^n
fv is the future cost of the subscription
pv is the current cost of $20
r is the expected percentage increase in cost
n is the number of years
the formula remains
where n is the number of years 3
10% is the same as 0.1
expected cost=$20*(1+0.1)^3
=$20*(1.1)^3
=$20*1.331 =$26.62
