Solve the Problem $\$ 20,000$ Every Year Thereafter, Expenses Increase By for Year

Multiple Choice

Solve the problem.
-Expenses for a company for year 1 are $\$ 20,000$ . Every year thereafter, expenses increase by $\$ 1,500$ plus $2 \%$ of the cost of the prior year. Let $a _ { 1 }$ represent the original cost for year 1 ; that is $a _ { 1 } = 20,000$ .
Use a recursive formula to find the cost $a _ { n }$ in terms of $a _ { n - 1 }$ for each subsequent year, $\mathrm { n } \geq 2$ .

A) $a _ { n } = 1.02 a _ { n - 1 } + 21,500 , n \geq 2$
B) $a _ { n } = 0.02 a _ { n - 1 } + 1,500 , n \geq 2$
C) $a _ { n } = 1.02 a _ { n - 1 } + 1,500 , n \geq 2$
D) $a _ { n } = 0.02 a _ { n - 1 } + 21,500 , n \geq 2$