In the Using the Theory section, we calculated the present value of attending a private college, under

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In the Using the Theory section, we calculated the present value of attending a private college, under the assumption that the costs remain the same for each of the four years. Recalculate the present value of these costs under the assumption that while implicit costs remain the same, tuition and other explicit costs rise by 8 percent per year, starting with the second year’s tuition and expenses. (Continue to assume that all costs are paid at the end of each year.)

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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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