Question

A local college has a current total student body enrollment of 12,400. The enrollment is decreasing at a rate of 5% per year. What will the student body enrollment be in 5 years?

Answer 1

FV= 9,716

Explanation:

Giving the following information:

Present value (PV)= 12,400

Decrease rate (d)= 5%

Number of periods (n)= 5 years

To calculate the enrolment value (future value) after 5 years, we need to use the following formula:

FV= PV / (1 + d)^n

FV= 12,400 / (1.05^5)

FV= 9,716