A woman spends 5% of her income on groceries. The next year she will spend 6%, and the following year 7%. If her annual income is \(\$70,000\) , how much does she spend on groceries in 3 years?
Explanation
Calculate the amount the woman spends for groceries in 3 years by adding what she spends every year for 3 years:
Total amount spent = Amount spent 1st yr + Amount spent 2nd yr + Amount spent 3rd yr
\(= (0.05)(\$70000) + (0.06)(\$70000) + (0.07)(\$70000)\)
\(= \$3500 + \$4200 + \$4900 = \$12,600\)