A private high school charges $52,200 for tuition, but this figure is expected to rise 7% per year. What will tuition be in 3 years?
We have the following appreciation equation A(y) where y is the number of years:
A(y) = Initial Balance * (1 + appreciation percentage)^ years
Appreciation percentage of 7% is written as 0.07, so we have:
A(3) = 52,200 * (1 + 0.07)^3
A(3) = 52,200 * (1.07)^3
A(3) = 52,200 * 1.225043
A(3) = 63,947.25
We have the following appreciation equation A(y) where y is the number of years:
A(y) = Initial Balance * (1 + appreciation percentage)^ years
Appreciation percentage of 7% is written as 0.07, so we have:
A(3) = 52,200 * (1 + 0.07)^3
A(3) = 52,200 * (1.07)^3
A(3) = 52,200 * 1.225043
A(3) = 63,947.25