In 1988 the average tuition for one year at an Ivy League school was $1,800 (PV). Thirty years later, in 2018, the average cost was $13,700(FV). What is the annual growth rate (I) in tuition over this 30-year period (N)? Hint: remember to change one of the cash flows to a negative amount. Group of answer choices 12% 9% 6% 7%
In 1988 the average tuition for one year at an Ivy League school was $1,800 (PV). Thirty years later, in 2018, the average cost was $13,700(FV). What is the annual growth rate (I) in tuition over this 30-year period (N)? Hint: remember to change one of the cash flows to a negative amount. Group of answer choices 12% 9% 6% 7%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In 1988 the average tuition for one year at an Ivy League school was $1,800 (PV). Thirty years later, in 2018, the average cost was $13,700(FV). What is the annual growth rate (I) in tuition over this 30-year period (N)? Hint: remember to change one of the cash flows to a negative amount.
Group of answer choices
12%
9%
6%
7%
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