Answer: a) $2000 b) 8% c)$2,938.66
Step-by-step explanation:
Given: The annual tuition at a community college since 2001 is modeled by the equation [tex]C=2000(1.08)^n[/tex], where C is the tuition cost and n is the number of years since 2001.
It is exponential growth equation [tex]y=A(1+r)^n[/tex], where
a)The initial cost (at year 2001) A= 2000
⇒ The tuition cost in 2001 = $ 2,000
b)The rate of growth= 0.08 or 8%
⇒ The annual percentage of tuition increase = 8%
c) To find the tuition cost in 2006, put n=5 in the equation ( Since n= 2006-2001=5), we get
The tuition cost in 2006=[tex]C=2000(1.08)^5=2938.656\approx2938.66[/tex]
Hence, the tuition cost in 2006= $2,938.66
