Question

Suppose that tuition at a state college was $3,500 per year in 1995 and has been increasing at a rate of $225 per year. Write an equation to model the cost of tuition as a function of time. Use that equation to predict the cost of tuition in the year 2007.

Answer 1

$7384.94

Explanation:

step one:

let us calculate the percentage increase

(225/2)*100

=0.06428*100

=6.42%

We know that the expression for exponential formula is

`y = ab^x.`

where

a = the amount before measuring growth or decay

= $3500

r = decay rate = 6.42%= 0.0642

x = number of time intervals that have passed that is between 1995 and 2007= 12years

since this problem is on groth we are going to replace "b" with (1+r),

hence the formula to model the cost is

`y = a(1+r)^x.`

`y=3500(1+0.0642)^1^2 \\\\y=3500(1.0642)^1^2 \\\\y=3500*2.109983 \\\\y=7384.94`

The cost of tuition in the year 2007 (12 years later) would be

$7384.94