In 2009, Internationale Outstanding University (IOU) had an enrollment of 27,431 undergraduates, each of whom paid $6,254 per year in tuition. In 2010, enrollment was 27,242 students, and tuition was raised 2.8%. In 2011, IOU received $186.8M in revenue from student tuition, and enrollment was 26,971 students. In 2012, it is estimated that tuition will be $7,050 and IOU needs to receive 4.7% more total revenue from tuition than in 2011. Assuming the 2012 revenue and student enrollment goals are met, what will be the average annual growth rate of tuition for 2009 to 2012? 0.00% AAR (%)
In 2009, Internationale Outstanding University (IOU) had an enrollment of 27,431 undergraduates, each of whom paid $6,254 per year in tuition. In 2010, enrollment was 27,242 students, and tuition was raised 2.8%. In 2011, IOU received $186.8M in revenue from student tuition, and enrollment was 26,971 students. In 2012, it is estimated that tuition will be $7,050 and IOU needs to receive 4.7% more total revenue from tuition than in 2011. Assuming the 2012 revenue and student enrollment goals are met, what will be the average annual growth rate of tuition for 2009 to 2012? 0.00% AAR (%)
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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Transcribed Image Text:In 2009, Internationale Outstanding University (IOU) had an enrollment of 27,431 undergraduates,
each of whom paid $6,254 per year in tuition. In 2010, enrollment was 27,242 students, and tuition
was raised 2.8%. In 2011, IOU received $186.8M in revenue from student tuition, and enrollment was
26,971 students. In 2012, it is estimated that tuition will be $7,050 and IOU needs to receive 4.7%
more total revenue from tuition than in 2011.
Assuming the 2012 revenue and student enrollment goals are met, what will be the average annual
growth rate of tuition for 2009 to 2012?
PS1 1
S
0.00% AAR (%)
2
3
E
D
4 5
4
NO
X
C
6
R
F
7 8
5
T
G
6
B
MacBook Pro
Y
SUBMIT ANSWER EXIT
9
H
N
8
CALCULATED VARIABLES:
2012enroll = 27,745
2012rev 195.6
11g=0.077 (7.7%)
11t = $6,926
10t = $6,429
growth=-189
1
ADMISSIONS
M
9
K
O
*
O
P
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