Question

In 2000, a college tuition was $4,800. Since then, the tuition has increased at a rate of 6.3% per year. If Bobby's first year of tuition was $14,416, what year did Bobby begin at the college?

Answer 1

To find out the year Bobby began at the college, we can use the formula for compound interest and solve for time.

Step-by-step explanation:

To find out the year Bobby began at the college, we can use the formula for compound interest:

Final value = Initial value * (1 + rate)^time

Using this formula, we can set up the equation:

$14,416 = $4,800 * (1 + 0.063)^time

By solving for time, we can find the number of years that have passed since 2000:

time = log(14,416/4,800) / log(1.063)

Using a calculator, we find that the time is approximately 9.2 years. Therefore, Bobby began at the college in the year 2000 + 9 = 2009.