EXERCISE 6-17 (30 MINUTES)

1. If 9% increases continue for ten years, then the cost of tuition and

room and board at a private college will cost 2.37 times as much as to-

day (1.09 ¹⁰ =2.37). Thus, a college education that costs $100,000 today

would cost $237,000 in ten years. This appears to be quite unafford-

able—particularly if family incomes increase at much less than the 9%

rate.