Bloomington University charges $53,730 for tuition. If they raise their tuition by 8% each year, how much will tuition be in 2 years?
If necessary, round your answer to the nearest cent.
To find the tuition after 2 years with an 8% increase each year, we need to multiply the original tuition by the increase factor for each year.
First, calculate the increase factor for 1 year by adding 1 to the percentage increase and then convert it to decimal form:
Increase factor for 1 year = 1 + (8% / 100) = 1 + 0.08 = 1.08
Then, to calculate the tuition after 2 years, multiply the original tuition by the increase factor for 2 years:
Tuition after 2 years = $53,730 * (1.08)^2
Now, let's calculate it:
Tuition after 2 years = $53,730 * 1.08 * 1.08 = $62,568.16
So, the tuition after 2 years would be approximately $62,568.16 when rounded to the nearest cent.
To calculate the tuition in 2 years, we need to calculate the annual increase for two years and apply it to the current tuition.
First, we calculate the increase for one year:
8% of $53,730 = $4,298.40
Next, we calculate the increase for two years by multiplying the increase for one year by two:
$4,298.40 * 2 = $8,596.80
Finally, we add the increase to the current tuition to find the tuition in 2 years:
$53,730 + $8,596.80 = $62,326.80
Therefore, the tuition in 2 years will be approximately $62,326.80.