The first answer
Step by step
His first year costs $8,000
So our total amount to start with is $8,000
His second year will cost 12% more than his first so $8,000 • 1.12 = $8,960
Our total is now $16,960
His third year will again will be 12% more than his last year so $8,960 • 1.12 = 10,035.2
Our total is now $26,995.2
His last year will be 12% more than his previous year so $10,035.2 • 1.12 = $11,239.42
Our final total is $38,234.62
Which rounded equals $38,235
