College costs have been rising roughly at a rate of %per year for decades. Since
ID: 3144830 • Letter: C
Question
College costs have been rising roughly at a rate of %per year for decades. Since 1985, the overall consumer price index has risen 115% while the college education inflation rate has risen nearly 500%. According to Gordon Wadsworth, author of The College Trap, "...if the cost of college tuition was $10,000 in 1986, it would now cost the same student over $21,500 if education had increased as much as the average inflation rate but instead education is $59,800 or over 2 ½ times the inflation rate." (http://www.forbes.com, 2016) Assuming the $10,000 n 1986, the $21,500)n 2016 and the $59,800 in 2016 are correct, which numbers are not precisely matching these three given numbers? When applicable, write the precise numb (two decimal places) in the space provided. 96 per year increase in college _115% overall increase in costs of goods nearly 500% overall increase in college 2% times annual rate of college versus goods Formulas (ending-beginning)x100 overall percent change= beginning l + annual rte -1 + overall rateExplanation / Answer
(I) (1.07)^30 => 7.612
(Ii) (21500 - 10,000)/10000 * 100
=> 115%
(Iii) (59,800 - 10,000)/10,000 * 100
=> 498% nearly 500%