Question

Derrick's parents are finalizing a budget for his college expenses. His first year of college will cost $8,000, and his

expenses will increase by 12% each year. Which statement is correct regarding the amount they should budget for
Derrick's four-year college education, to the nearest dollar?

Answer 1

A

Explanation:

edg 2021

Answer 2

The first answer



Step by step

His first year costs $8,000
So our total amount to start with is $8,000

His second year will cost 12% more than his first so $8,000 • 1.12 = $8,960
Our total is now $16,960

His third year will again will be 12% more than his last year so $8,960 • 1.12 = 10,035.2
Our total is now $26,995.2

His last year will be 12% more than his previous year so $10,035.2 • 1.12 = $11,239.42
Our final total is $38,234.62
Which rounded equals $38,235