Question

The total estimated cost of attending a public two-year college in Hasani’s 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?

Answer 1

Last year total estimated cost: $2,265

This year (after 1 year) total estimates cost for 2 years is: 1.05 X $2,265 = $2,378.25

So, for 1 year will be the half of the above amount: $2,378.25 : 2 = $1,189.13

Answer 2

Answer: D

Explanation:

2,497.16