Question
Multiple Choice 5 points A private high school charges \( \$ 57.000 \) for tuition, but this figure is expected to rise \( 10 \% \) per year. What will tuition be in 3 years? \( \$ 41,553 \) \( \$ 75,867 \) \( \$ 83,453.70 \) \( \$ 68,970 \)
Ask by Craig Ortiz. in the United States
Jan 24,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
The tuition in 3 years will be \$75,867.
Solution
To calculate the tuition after 3 years with an annual increase of 10%, use the compound interest formula:
\[
\text{Future Tuition} = \text{Current Tuition} \times (1 + \text{Rate})^{\text{Years}}
\]
Plugging in the values:
\[
\text{Future Tuition} = \$57,000 \times (1 + 0.10)^3 = \$57,000 \times 1.331 = \$75,867
\]
**Answer:** \$75,867
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Simplify this solution Mind Expander
To find the tuition in 3 years with a 10% increase per year, we can use the formula for compound interest: \[ Future\ Value = Present\ Value \times (1 + Rate)^{Years} \] Plugging the numbers in: \[ Future\ Value = 57,000 \times (1 + 0.10)^3 \] Calculating: \[ Future\ Value = 57,000 \times (1.10)^3 = 57,000 \times 1.331 = 75,867 \] So the tuition will be \( \$ 75,867 \) in 3 years.
