Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 4

For many years, college cost increases have been about twice the inflation rate, averaging 5% to 8% per year. According to the College Board's Trends in College Pricing , the 2011-2012 average annual total costs (including tuition, fees, room and board) re $17,131 for students attending four-year public colleges and universities in-state, $29,657 out-of-state, and $38,589 at four-year private colleges and universities. Use a 7% per year inflation rate. ( a ) termine how much a sophomore high-school student can expect to spend on in-state tuition, fees, room and board when he or she starts at a four-year public college iN₃ years. ( b ) termine the total annual cost if textbooks, supplies, etc. currently average $4000 per year and they also increase at 7% per year.