Question

Derrick’s parents are finalizing a budget for his college expenses. His first year of college will cost $8,000, and his expenses will increase by 12% each year. Which statement is correct regarding the amount they should budget for Derrick’s four-year college education, to the nearest dollar? They should use mc024-1.jpg to find that $38,235 is needed. They should use mc024-2.jpg to find that $42,823 is needed. They should use mc024-3.jpg to find that $32,072 is needed. They should use mc024-4.jpg to find that $39,200 is needed.

Answer 1

Answer:

they should use mc024-4. jpq

Answer 2

Given :-

• first year of college will cost = $8,000 .
• Expenses increase each year = 12% .

To Find :-

• Total expenses in four year = ?

Solution :-

→ Expense for first year = $8000

→ Expense for second year = 8000 + 12% of 8000 = (8000 * 112)/100 = $8960 .

→ Expense for third year = 8960 + 12% of 8960 = (8960 * 112)/100 = $10035.2

→ Expense for fourth year = 10035.2 + 12% of 10035.2 = (10035.2 * 112)/100 = $11239.4 .

then,

→ Total expenses for four years = 8000 + 8960 + 10035.2 + 11239.2 = $38234.6 ≈ $38235 (Ans.)