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: Identify the compound - growth formula

The formula for compound - growth is $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the rate of growth as a decimal, and $n$ is the number of time periods. Here, $P=$53730$, $r = 0.08$ (since $8%=0.08$), and $n = 2$.

Step2: Substitute the values into the formula

$A=53730\times(1 + 0.08)^2$. First, calculate $(1 + 0.08)^2=(1.08)^2=1.1664$. Then, $A = 53730\times1.1664$. $A=53730\times1.1664 = 62670.672$.

Step3: Round the answer

Rounding $62670.672$ to the nearest cent gives $$62670.67$.

Answer:

$62670.67$