At Takoma Park University, they offer a multitude of courses each quarter. The students pay $1,200 per course. However, Dean Dong realizes that the tuition needs to be increased because of rising costs. After some analysis, Dean Dong determined that tuition needs to increase by $300 per course. At dinner one evening, Patsy Prune, Strawberry Shortcake, Blueberry Bonnie, and Ted Cabbagepatch were talking about the increase in tuition. Patsy Prune was real upset and she said she may need to drop out of Takoma Park University. Strawberry Shortcake told Patsy Prune to just pay the increase in tuition and move-on. Then Ted Cabbagepatch told Patsy Prune don't be so sensitive about it. Is Strawberry Shortcake and Ted Cabbagepatch correct? [Hint: May want to discuss the benefits and costs of education etc].
A college education is more expensive today than at any other time in history, and it is getting worse every semester. The average annual tuition increase is about 8% (http://www.finaid.org/savings/tuition-inflation.phtml).
Dean Dong's proposed tuition hike is significant. At 25%, the increase is likely to force many students to have to consider whether their education is affordable. However, due diligence on the parts of the students is necessary in weighing the additional cost of the education against the benefits.
Patsy Prune should investigate how prestigious a Takoma Park U degree is relative to other options in the area. For example, does the 25% increase pit Takoma U against colleges that offer a better education or more enhanced job opportunities upon graduation? If so, Patsy might ...
The solution considers a cost/benefit analysis of educational costs including tution incresaes.