The average annual cost of college at 4-year private colleges

The average annual cost of college at 4-year private colleges was $25,143 in the 2008–2009 academic year. This was a 5.9% increase from the previous year.

(a) If the cost of college increases by 5.9% each year, what will be the average cost of college at a 4-year private college for the 2028–2029 academic year?

(b) College savings plans, such as a 529 plan, allow individuals to put money aside now to help pay for college later. If one such plan offers a rate of 4% compounded continuously, how much should be put in a college savings plan in 2010 to pay for 1 year of the cost of college at a 4-year private college for an incoming freshman in 2028?

CUMULATIVE REVIEW:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Section 5.1:
2
3
4
5
6
7
8
9
10
11
Section 5.8:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Section 5.9:
1
2
3
4
5
6
7
8
9
10
11
12
13