In 1958 the average tuition for one year at a private school was R1,800.Thirty years later, in 1988, the average cost was R13,700.What was the growth rate in tuition over the 30-year period?

Question

Quizplus · Accepted Answer

The growth rate can be calculated using the formula for compound annual growth rate (CAGR): CAGR = (Ending Value/Beginning Value)^(1/Number of Years) - 1. Plugging in the values: CAGR = (13700/1800)^(1/30) - 1 ≈ 0.07 or 7%.

In 1958 the Average Tuition for One Year at a Private