bloomington university charges $53,730 for tuition. if they raise their tuition by 8% each year, how much…

bloomington university charges $53,730 for tuition. if they raise their tuition by 8% each year, how much will tuition be in 2 years? if necessary, round your answer to the nearest cent. $

bloomington university charges $53,730 for tuition. if they raise their tuition by 8% each year, how much will tuition be in 2 years? if necessary, round your answer to the nearest cent. $

Answer

Explanation:

Step1: Calculate tuition after 1 - year

The formula for calculating the new amount after a percentage increase is $A = P(1 + r)$, where $P$ is the original amount, $r$ is the rate of increase. Here, $P=$53730$ and $r = 0.08$. So the tuition after 1 year is $A_1=53730\times(1 + 0.08)=53730\times1.08$. $A_1 = 53730\times1.08=58028.4$.

Step2: Calculate tuition after 2 - years

Use the amount after 1 year as the new principal. So $A_2=A_1\times(1 + 0.08)$. Substitute $A_1 = 58028.4$ into the formula, we get $A_2=58028.4\times1.08$. $A_2=58028.4\times1.08 = 62670.672\approx62670.67$.

Answer:

$62670.67$