reported that the average annual cost of tuition, room, and board, and other expenses at public four-year colleges is
$21,500 in 2023 (to be paid at the beginning of 2023). The cost has risen 3.5% over the last year. You feel this
percentage increase is a good long-term estimate. You also believe that you can earn a rate of 7% compounded
annually on investments to meet this goal.
A.
If costs continue to rise 3.5% per year, how much will it cost for the first year of tuition in 13
years?
Fig: 1