Every year, the cost of solar panels drops by roughly 6%. If solar panels currently cost $5,918 per kilowatt, what will the per-kilowatt cost be in 8 years?
If necessary, round your answer to the nearest cent.
To find the per-kilowatt cost in 8 years, we need to decrease the current cost by 6% for 8 years.
First, calculate the decrease in cost for one year by multiplying the current cost by 6%: $5,918 * 0.06 = $355.08
Then subtract that amount from the current cost to find the cost after one year: $5,918 - $355.08 = $5,562.92
Now repeat this process for the subsequent years:
For year 2, calculate the decrease in cost for one year: $5,562.92 * 0.06 = $333.77
Subtract that amount from the previous year's cost: $5,562.92 - $333.77 = $5,229.15
For year 3: $5,229.15 * 0.06 = $313.75, $5,229.15 - $313.75 = $4,915.40
For year 4: $4,915.40 * 0.06 = $294.92, $4,915.40 - $294.92 = $4,620.48
For year 5: $4,620.48 * 0.06 = $277.23, $4,620.48 - $277.23 = $4,343.25
For year 6: $4,343.25 * 0.06 = $260.60, $4,343.25 - $260.60 = $4,082.65
For year 7: $4,082.65 * 0.06 = $244.96, $4,082.65 - $244.96 = $3,837.69
For year 8: $3,837.69 * 0.06 = $230.26, $3,837.69 - $230.26 = $3,607.43
Therefore, the per-kilowatt cost of solar panels will be $3,607.43 in 8 years.