Please help with math?

Question

Here are the answers I came up with for the first part of my assignment (these are the expenses for the first year) I now have to figure out what these amounts would be for 5 years with a 3% increase each year.

How do I do this?

FIRST YEAR EXPENSES

Property taxes $380 per month $380 *12 = $4,560.

Yearly rate would be $4,560 then multiply by the .55 to get $2,508

(They have a 45% tax rate)

Repair and maintenance $100 per month $1200 per year

Utilities $220 per month $2640 per year

Insurance is $50 per month or $600 per year

Answer 1

haha you got hard math

Answer 2

for the second year you multiply your first year expenses with the percent increase (.03) and add it to the first year expense.

ie:  property taxes for first year is $4,560. to find second year expense you'll do this

4560 + (4560 * .03) = 4560 + 136.8 = $4,696.8

and do that for the rest of the expenses.

for the third year

4696.8 + (4696.8* .03) = 4696.8 * 140.904 = $4,837.704

and you just keep on doing that until you reach the fifth year.

you can also use this equation to find it.

P * ( 1 + R / N ) ^ ( N * T )  

where P is the starting amount, R is percent, N is how many time interest will occur in a year, T is how many years.