the total estimated cost of attending a public two - year college in hasanis home town last year was $2,265…

the total estimated cost of attending a public two - year college in hasanis home town last year was $2,265. the cost of attending the college is expected to increase 5% annually. hasani plans to enter the college this year and attend for 2 years. which is the best estimate for the total cost hasani will pay for only his second year? $2,270.66 $2,275.00 $2,491.50 $2,497.16

the total estimated cost of attending a public two - year college in hasanis home town last year was $2,265. the cost of attending the college is expected to increase 5% annually. hasani plans to enter the college this year and attend for 2 years. which is the best estimate for the total cost hasani will pay for only his second year? $2,270.66 $2,275.00 $2,491.50 $2,497.16

Answer

Explanation:

Step1: Identify the formula for compound - growth

The formula for compound - growth is $A = P(1 + r)^n$, where $P$ is the initial amount, $r$ is the annual growth rate as a decimal, and $n$ is the number of years. Here, $P=$2265$, $r = 0.05$, and $n = 2$ (since we want to find the cost in the second year).

Step2: Substitute the values into the formula

$A=2265\times(1 + 0.05)^2$. First, calculate $(1 + 0.05)^2=(1.05)^2 = 1.1025$. Then, $A = 2265\times1.1025$. $A=2265\times1.1025 = 2497.1625\approx2497.16$.

Answer:

D. $2,497.16$