How much will a college education cost in eighteen years

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Problem 1: Suppose a college education costs $10,000 a year right now and is expected to grow at 8 percent a year. How much will a college education cost in 18 years? Redo the problem but assume that tuition grows at only 4 percent a year. How does this answer compare to the $39,960 answer above? Explain why the value is not half of the $39,960.

Reference no: EM132856746

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