A poster shown at the announcement of the new credit card bill shows the information given below. Over a ten year cycle, a $50 sweater will have an actual cost of $456 and $1,000 in tuition will have an actual cost of $9,305.
To calculate the actual cost of $1000 in tuition over a ten year cycle at 24.99% use the formula 1000 x 1.2499^10. To calculate the actual cost of a $50 sweater over a ten year cycle at 24.99% use the formula 50 x 1.2499^10. Compare your results with the numbers in the poster. Exponential growth problems are common on New York State mathematics Regents exams.