ASVAB Practice Test

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Prepare effectively for the ASVAB exam with our comprehensive quiz. Engage with multiple-choice questions and detailed explanations designed to enhance your understanding and boost your confidence. Get ready to achieve your career aspirations!

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Each August, a restaurant's rent is adjusted to the cost of living index. The rent has been $1,550 a month, and the cost of living index for this August was 3.7%. What is the new rent per month?

$1,607.35
$1,590.85
$1,600.00
$1,610.75

The correct answer is: $1,607.35

The new rent per month is $1,607.35. This is because the rent was adjusted by a 3.7% increase in the cost of living index from the previous month's rent of $1,550. Option B is incorrect because it does not factor in the 3.7% increase and is too close to the original rent amount. Option C is incorrect because it does not account for the increase in the cost of living index. Option D is incorrect because it is higher than the correct answer and does not take into account the 3.7% increase. Therefore, the only correct option is A, which includes the 3.7% increase and provides the new rent amount of $1,607.35.