Answer:
$386.9
Step-by-step explanation:
Given that current grocery costs are $500 and he want to reduce 5% every month
We can create a geometric progression with a = 500 and common ratio(r) = 0.95
because every time we reduce 5% we actually make the actual cost as 95%
[tex]T(n)=ar^{n-1}[/tex]
Now we should find n=6
[tex]T(6)=500\times(0.95)^{6-1}[/tex]
[tex]t(6)=386.9[/tex]
The allotment is $386.9
