The tuition in a private university was $25,000 per academic year in 1999. If the inflation rate has been averaging at the rate of 3%, how much one should have invested in 1999 to send a kid to this private university in 2017. Assume the investment earned an 8% return. Answer Options: $10,649 $12,156 $14,027 $13,252

The tuition in a private university was $25,000 per academic year in 1999. If the inflation rate has been averaging at the rate of 3%, how much one should have invested in 1999 to send a kid to this private university in 2017. Assume the investment earned an 8% return. Answer Options: $10,649 $12,156 $14,027 $13,252

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The tuition in a private university was $25,000 per academic year in 1999. If the inflation rate has been
averaging at the rate of 3%, how much one should have invested in 1999 to send a kid to this private
university in 2017. Assume the investment earned an 8% return.
Answer Options:
$10,649
$12,156
$14,027
$13,252

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