Question
Use the information for the question(s) below. Suppose that a young couple has just had their first baby, a daughter, and they wish to ensure
Use the information for the question(s) below. Suppose that a young couple has just had their first baby, a daughter, and they wish to ensure that enough money will be available to pay for her college education. Currently, college tuition, books, fees, and other costs, average $12,500 per year. On average, tuition and other costs have historically increased at a rate of 4% per year. Assuming that costs continue to increase an average of 4% per year, tuition and other costs for one year for this student in 18 years when she enters college will be closest to:
$21,500. | ||
$320,568. | ||
$25,323. | ||
$12,500. |
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