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2-) Suppose it costs $15,000 per year (in early 2009 dollars) for tuition, room, board and living expenses to attend a public university in the
2-) Suppose it costs $15,000 per year (in early 2009 dollars) for tuition, room, board and living expenses to attend a public university in the Southeastern United States. The annual college expense will be paid at the beginning of each college year.
- If inflation averages 6% per year, what is the total cost of a four-year college education starting in 2022 (i.e., 13 years from now, in terms of 2022 constant dollars)?
- Starting in January 2009, what monthly savings amount must be put aside to pay for this four-year college education? Assume your savings account earns 6% per year, compounded monthly. First deposit will be made at the end of the first month, and that deposits will continue until the first year of university.
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