In 1958 the Average Tuition for One Year at an Ivy

question 54

Multiple Choice

In 1958 the average tuition for one year at an Ivy League school was $1,800.Thirty years later, in 1988, the average cost was $13,700.What was the growth rate in tuition over the 30-year period?

• A)12%
• B)9%
• C)6%
• D)7%
• E)8%

---

Definitions:

Firm's Assets

Resources owned by a company that have economic value and can be used to meet its financial obligations or invest in its operations.

Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's assets and earnings.

In The Money

A term used to describe an option that has intrinsic value; for a call option, it means the underlying price is above the strike price.

Option Pricing Theory

A framework used in finance to determine the fair value of an option based on factors such as the stock price, strike price, volatility, time to expiration, and risk-free interest rate.