A college education costs approximately$75,000 at an Ivy league school,inflation averages 5%,what factor will you use to determine the cost of an education in 15 years?
A)2)0789
B)2)7890
C)2)9500
D)0)4810

Question

Quizplus · Accepted Answer

To determine the future cost of education, you use the formula for compound interest: Future Value = Present Value * (1 + inflation rate)^number of years. Here, the factor is (1 + 0.05)^15, which approximately equals 2.0789.

A College Education Costs Approximately$75,000 at an Ivy League School,inflation