A year's tuition at an Ontario university cost $250 in 1972,when the consumer price index (CPI)was 21.9.The cost of a year's tuition at the same university cost $3,000 in 2000,when the CPI was 95.4.Between 1972 and 2000,the real cost of tuition

Question

Quizplus · Accepted Answer

To calculate the real cost of tuition, we need to adjust for inflation. We can use the CPI to do this by dividing the current CPI (2000) by the CPI from the base year (1972) and multiplying by the original cost of tuition.

Real cost of tuition in 1972 = $250
Real cost of tuition in 2000 = (250/21.9) x 95.4 = $1,098.63 (rounded to the nearest cent)

Therefore, the real cost of tuition increased from $250 to $1,098.63 between 1972 and 2000, indicating that choice A) increased is the correct answer.

A Year's Tuition at an Ontario University Cost $250 in 1972,when