Answer:
- at 3%: about $20,000 to $47,000
- at 6%: about $27,000 to $63,000
Step-by-step explanation:
You want to know the range of tuition costs in 10 years if the range now is $15000 to $35000 and the rate of increase is 3% per year. You also want to know the future range if the rate of increase is 6%.
Future value
The future amount of a quantity that grow at annual rate r for t years is ...
A = P(1 +r)^t
where P is the initial amount.
3% growth
If the values $15000 and $35000 grow at 3% per year for 10 years, their future values will be ...
A = {15000, 35000}(1 +.03)^10 ≈ {20159, 47037}
The range of tuition costs in 10 years will be about $20,000 to $47,000.
6% growth
The same formula with 6% growth gives a range of ...
A = {15000, 35000}(1 +.06)^10 ≈ {26863, 62680}
The range of tuition costs in 10 years will be about $27,000 to $63,000.
__
Additional comment
The costs today are given to 2 significant figures, the nearest thousand. The same precision is appropriate for the answer. We have shown values with 5 or more significant figures in case your answer checker needs more precision.
