If Average Annual Tuition at Public 4-Year Colleges Was $1,908

question 192

Multiple Choice

If average annual tuition at public 4-year colleges was $1,908 in 1990,when the CPI was 130.7,and $8,655 in 2012 when the CPI was 229.6,then the real cost of annual tuition

• A)rose by 158 percent during that period.
• B)rose by 354 percent during that period.
• C)rose by 75.7 percent during that period.
• D)fell by 158 percent during that period.
• E)fell by 354 percent during that period.

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Definitions:

Long Term Liability

A financial obligation of a company that is due for a period exceeding one year, including bonds payable, long-term loans, lease obligations, and pension obligations.

Future Value

The amount of money an investment will grow to over a period of time at a specified interest or growth rate.

Future Value

The estimated amount that an investment will grow to over a period of time at a specified rate of interest.

Compounded Annually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once per year.