Question

College tuition has risen significantly in the last few decades. For the sake of this problem, let’s assume that over the last 20 years the cost of college, including total tuition, room, and board paid by full-time undergraduate students went from $2,871 to $16,789 at public institutions, a 485% price increase, and from $6,330 to $33,716 at private institutions, a 433% increase. Over the same time, average personal income after taxes rose from $9,785 to $39,409 per year, an increase of 302%. Have these tuition increases made it more difficult for the average student to afford college tuition? Explain/show.

Answer 1

Thus the calculations reveal that for a typical person it has become more difficult to afford college.

Step-by-step explanation:

To know whether the expansion in educational cost made it progressively hard for the normal understudy on managing the school educational cost we need to make an examination of the increment in educational cost with the normal ascent in close to home pay after expenses.

The normal ascent for yearly in educational cost at open organizations of 6.4% is 30% higher pace of rise contrasted with the normal yearly ascent in close to home salary [= (6.4% - 4.9%)/4.9% = 0.30].

The normal yearly ascent in private establishments of 6.5% is 33% higher pace of rise [(6.5% - 4.9%)/4.9%] = 0.33).

Subsequently the estimations uncover that for an ordinary individual it has gotten increasingly hard to bear the cost of school.