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Elis [28]
3 years ago
6

Martha has $10,000 saved and wants to attend a college with a current tuition of $10,000 a year. She will graduate from high sch

ool in five years. Roughly how much more will Martha need to save for one-year’s tuition to account for an annual rate of inflation of 3%?
A. $1,590.00

B. $1,255.00

C. $300.00

D. $3,000.00
Mathematics
1 answer:
never [62]3 years ago
8 0

Answer:

A: 1,590.00

Step-by-step explanation:

We can use the simple interest rate equation for this problem: p(1 + r)^t

Step 1: Replace the variables with the amounts given

10000(1 + 0.03)^5

Step 2: Solve/Plug in calc

You will get 1590.00

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