If Four Years of College Is Expected to Cost $150,000

question 96

Essay

If four years of college is expected to cost $150,000 18 years from now, how much must be deposited now into an account that will average 8 percent annually in order to save the $150,000? By how much would your answer change if you expected 11 percent annually?

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Definitions:

Replication

The process of repeating an experiment or study to confirm the results.

Mozart Effect

The theory suggesting that listening to Mozart's music may induce a short-term improvement on the performance of certain kinds of mental tasks.

Solomon Four-Group Design

Experimental design in which the experimental and control groups are studied with and without a pretest.

External Validity

The extent to which the results of a study can be generalized or applied to other settings, populations, or situations.