In the news, you hear “tuition is expected to increase by 7% next year.” If tuition this year was $1200 per quarter, what will it be next year?
The tuition next year will be the current tuition plus an additional 7%, so it will be 107% of this year’s tuition:
$1200(1.07) = $1284.
Alternatively, we could have first calculated 7% of $1200: $1200(0.07) = $84.
Notice this is not the expected tuition for next year (we could only wish). Instead, this is the expected increase, so to calculate the expected tuition, we’ll need to add this change to the previous year’s tuition:
$1200 + $84 = $1284.
The tuition next year will be the current tuition plus an additional 7%, so it will be 107% of this year’s tuition:
$1200(1.07) = $1284.
Alternatively, we could have first calculated 7% of $1200: $1200(0.07) = $84.
Notice this is not the expected tuition for next year (we could only wish). Instead, this is the expected increase, so to calculate the expected tuition, we’ll need to add this change to the previous year’s tuition:
$1200 + $84 = $1284.