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Growth Rate of Tuition

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In 1958 the average tuition for one year at an Ivy League school was $1,800. Thirty years later, the average cost was $13,700. What was the growth rate in tuition over the 30-year period?

a. 12%
b. 9%
c. 6%
d. 7%
e. 8%

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Solution Summary

The solution explains how to calculate the growth rate in tuition fees using simple, step by step calculations.

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Growth rate is calculated using the compound interest formula. The formula is

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