To show the estimated expression for the compounding tuition fee function:
Using the compound interest relation :
[tex]B(x)=P(1+\frac{r}{n})^{nx}[/tex]
Where ;
b = final amount after x years
P = Initial amount = $33,741
r = rate = 2.8% = 0.028
x = number of years since 2015
n = number of compounding times per period = 1 (yearly)
The function b(x) can be written as :
[tex]\begin{gathered} B(x)=\text{\$}33,741(1+\frac{0.028}{1})^x \\ B(x)=\text{\$}33,741(1.028)^x \end{gathered}[/tex]
Therefore, the expression for the function b(x) is :
[tex]B(x)=\text{\$}33,741(1.028)^x[/tex]
