The average annual cost of college at 4-year private colleges was $29,026 in 2005. This was a 5.5% increase from the previous year. If the cost of college increases by 5.5% each year, what will be the average cost of college at a 4-year private college in 2015?
SUM = X * (1 + %)^n X – sum at start, % - interest rate for period/100, n – number of periods. There are 10 periods between 2005 and 2015 years. SUM = 29,026∙(1 + 0,055)^10≈29,026∙1.71≈49.581 $ . Answer: 49.581 $