The Average Yearly Cost of Tuition, Fees, and Room and Board

question 111

Multiple Choice

The average yearly cost of tuition, fees, and room and board at private four-year colleges in the United States was $20,805 for the academic year 1998/1999 and $24,817 for the academic year 2002/2003. Find the average yearly rate of inflation over this five-year period. Round to the nearest hundredth of a percent.

• A)3.47%
• B)3.77%
• C)3.59%
• D)3.68%
• E)4.03%

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Definitions:

Rationally

Acting based on reason or logic, typically in a way that maximizes self-interest or advantage within certain constraints or information.

Mental Accounting

The cognitive process individuals use to organize, evaluate, and keep track of their financial activities and decisions.

Irrational Decisions

Decisions made that do not follow logical reasoning or expected outcomes.

Opportunity Cost

The missed opportunity for profit from different options when a specific choice is made.