Your university is running a special offer on tuition.This year's tuition cost is $18,000.Next year's tuition cost is scheduled to be $19,080.The university offers to discount next year's tuition at a rate of 6% if you agree to pay both years' tuition in full today.How much is the total tuition bill today if you take the offer?
A)$18,000
B)$34,981
C)$37,080
D)$36,000

Question

Quizplus · Accepted Answer

The total tuition bill today is $18,000 for this year plus $19,080 discounted by 6% for next year. The discount on $19,080 is $1,144.80, so the discounted tuition for next year is $17,935.20. Adding this to $18,000 gives a total of $35,935.20, which rounds to $36,000.

Your University Is Running a Special Offer on Tuition