Answer:
$7,596.43
Step-by-step explanation:
The cost of the college tuition is increasing 5% compounded annually for 5 years.
∴ A = P(1 + r%)ⁿ
where A = tuition fee after 5 years.
P = current tuition
r = rate of increase
n = period
A = $5,952(1 + 5%)⁵
= $5,952(1 + 0.05)⁵
= $5,952 × 1.05⁵
= $7,596.43
=
Answer:
College tuition fees after fifth year = $7596.42
Step-by-step explanation:
Cost of tuition at present = $5952
Percentage increase in first year = 5%
College tuition fees after first year = 5952+ 5% of 5952 = $6249.6
Percentage increase in second year = 5%
College tuition fees after second year = 6249.6+ 5% of 6249.6 = $6562.08
Percentage increase in third year = 5%
College tuition fees after third year = 6562.08+ 5% of 6562.08= $6890.184
Percentage increase in fourth year = 5%
College tuition fees after fourth year =6890.184+5% of 6890.184=$7234.69
Percentage increase in fifth year = 5%
College tuition fees after fifth year =7234.69+5% of 7234.69 = $7596.42
