College Costs The average annual cost of college at 4-year private colleges was $ 31 , 231 in the 2014-2015 academic year. This was a 3.7 % increase from the previous year. Source: The College Board (a) If the cost of college increases by 3.7 % each year, what will be the average cost of college at a 4-year private college for the 2034-2035 academic year? (b) College savings plans, such as a 529 plan, allow individuals to put money aside now to help pay for college later. If one such plan offers a rate of 2 % compounded continuously, how much should be put in a college savings plan in 2016 to pay for 1 year of the cost of college at a 4-year private college for an incoming freshman in 2034?
College Costs The average annual cost of college at 4-year private colleges was $ 31 , 231 in the 2014-2015 academic year. This was a 3.7 % increase from the previous year. Source: The College Board (a) If the cost of college increases by 3.7 % each year, what will be the average cost of college at a 4-year private college for the 2034-2035 academic year? (b) College savings plans, such as a 529 plan, allow individuals to put money aside now to help pay for college later. If one such plan offers a rate of 2 % compounded continuously, how much should be put in a college savings plan in 2016 to pay for 1 year of the cost of college at a 4-year private college for an incoming freshman in 2034?
Solution Summary: The author explains that the average annual cost of college at 4-year private colleges was 31, 231 in the 2014-2015 academic year, a 3.7 % increase from the previous year.
College Costs
The average annual cost of college at 4-year private colleges was
in the 2014-2015 academic year. This was a
increase from the previous year.
Source:
The College Board
(a) If the cost of college increases by
each year, what will be the average cost of college at a 4-year private college for the 2034-2035 academic year?
(b) College savings plans, such as a 529 plan, allow individuals to put money aside now to help pay for college later. If one such plan offers a rate of
compounded continuously, how much should be put in a college savings plan in 2016 to pay for 1 year of the cost of college at a 4-year private college for an incoming freshman in 2034?
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