a. If one year of college costs 12500 now and costs are increasing at a rate of
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Question:
a. If one year of college costs 12500 now and costs are increasing at a rate of 4% per year, how much will one year of college cost in 18 years?
b. If college costs continue to increase at 4% per year, and Anna's college savings are invested in an account that pays 7% interest, how much money will she need to have available at age 18 to pay for all four years of her undergraduate education?
Expert Answer:
a To calculate the cost of college in 18 years we can use the formula for compound interest A P1 rn Where A is the future value of the investment cost ... View the full answer
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