Question

Middletown University charges $29,000 for tuition. If they raise their tuition by 5% each year,

how much will tuition be in 3 years?

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$29000\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{each year, thus once} \end{array}\dotfill &1\\ t=years\dotfill &3 \end{cases} \\\\\\ A=29000\left(1+(0.05)/(1)\right)^(1\cdot 3)\implies A=29000(1.05)^3\implies A\approx 33571.13`

Answer 2

$33,350

Explanation: