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.