Problema Solution
The cost of attending a certain college has been increasing at 6% each year. If it costs $25,000 now, how much will it cost in 25 years?
Answer provided by our tutors
The cost now: $25,000
The cost in 1 year: 25,000 + 25,000*0.06 = 25,000*1.06
The cost in 2 years: 25,000*1.06 + 25,000*1.06*0.06 = 25,000*(1.06^2)
........
The cost in 25 years: 25,000*(1.06^25) = $107,296.77.