the total estimated cost of attending a public two - year college in hasanis home town last year was $2,265…

the total estimated cost of attending a public two - year college in hasanis home town last year was $2,265. the cost of attending the college is expected to increase 5% annually. hasani plans to enter the college this year and attend for 2 years. which is the best estimate for the total cost hasani will pay for only his second year?\n$2,270.66\n$2,275.00\n$2,491.50\n$2,497.16

the total estimated cost of attending a public two - year college in hasanis home town last year was $2,265. the cost of attending the college is expected to increase 5% annually. hasani plans to enter the college this year and attend for 2 years. which is the best estimate for the total cost hasani will pay for only his second year?\n$2,270.66\n$2,275.00\n$2,491.50\n$2,497.16

Answer

Explanation:

Step1: Identify the formula for compound - growth

The formula for compound - growth is $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the annual growth rate as a decimal, and $n$ is the number of years. Here, $P=$2265$, $r = 0.05$, and $n = 1$ (since we want the cost in the second year, which is 1 year after the first - year cost).

Step2: Substitute the values into the formula

$A=2265\times(1 + 0.05)^1$. First, calculate $(1 + 0.05)=1.05$. Then, $A = 2265\times1.05$. $A=2265\times1.05=2378.25$ (this is the cost for the first year). For the second - year cost, we use the first - year cost as the new $P$. So, $P = 2378.25$, $r=0.05$, and $n = 1$. $A=2378.25\times(1 + 0.05)$. $A=2378.25\times1.05=2497.1625\approx2497.16$.

Answer:

$$2497.16$