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Solve the Problem $20,000\$ 20,000 Every Year Thereafter, Expenses Increase By for Year

Question 54

Multiple Choice

Solve the problem.
-Expenses for a company for year 1 are $20,000\$ 20,000 . Every year thereafter, expenses increase by $1,500\$ 1,500 plus 2%2 \% of the cost of the prior year. Let a1a _ { 1 } represent the original cost for year 1 ; that is a1=20,000a _ { 1 } = 20,000 .
Use a recursive formula to find the cost ana _ { n } in terms of an1a _ { n - 1 } for each subsequent year, n2\mathrm { n } \geq 2 .


A) an=1.02an1+21,500,n2a _ { n } = 1.02 a _ { n - 1 } + 21,500 , n \geq 2
B) an=0.02an1+1,500,n2a _ { n } = 0.02 a _ { n - 1 } + 1,500 , n \geq 2
C) an=1.02an1+1,500,n2a _ { n } = 1.02 a _ { n - 1 } + 1,500 , n \geq 2
D) an=0.02an1+21,500,n2a _ { n } = 0.02 a _ { n - 1 } + 21,500 , n \geq 2

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