Because testing of nuclear bombs was halted internationally

Because testing of nuclear bombs was halted internationally in 1992, the Department of Energy has developed a laser system that allows engineers to simulate (in a laboratory) conditions in a thermonuclear reaction. Due to soaring cost overruns, a congressional committee undertook an investigation and discovered that the estimated development cost of the project increased at an average rate of 2% per week over a 5-year period. If the original cost was estimated to be $2.3 billion 5 years ago, what is the expected cost today? The expected cost today is $___ billion

Solution

There are 365 days in a year. If we suppose there are 2 leap year during this five years of time span so the total no.of days will be

365×3=1095 days

366×2= 732 days

Total days will be 1827

No.of weeks 1827÷7= 261 weeks

Now the increment in the project will be 2%/week

So in the total it will increase by 261×2=522%

Now the initial cost was 2.3 billion$

So the current cost will be 2.3+522% = 14.3billon$.