Respuesta :
Answer:
$229673.215
Step-by-step explanation:
Given : The price of attending Big Benefits University is $42,000 a year, including tuition, fees, books, and foregone earnings
To Find : what is the marginal cost of attending, if it takes you 5 years to graduate, and you assume a 3% annual inflation rate?
Solution:
Principal = $42000
Time = 5 years
Rate = 3% = 0.03
Formula : [tex]A=P(1+r)^t[/tex]
[tex]A_1=42000(1+0.03)^1[/tex]
[tex]A_1=43260[/tex]
[tex]A_2=42000(1+0.03)^2[/tex]
[tex]A_2=44557.8[/tex]
[tex]A_3=42000(1+0.03)^3[/tex]
[tex]A_3=45894.534[/tex]
[tex]A_4=42000(1+0.03)^4[/tex]
[tex]A_4=47271.370[/tex]
[tex]A_5=42000(1+0.03)^4[/tex]
[tex]A_5=48689.511[/tex]
So , Marginal cost = 43260+44557.8+45894.534+47271.370+48689.511
Marginal cost = $229673.215
Hence the marginal cost of attending, if it takes you 5 years to graduate, and you assume a 3% annual inflation rate is $229673.215
