Question

The average annual tuition for four-year private colleges increased by 5.9 percent from last year. The average cost last year was $31,250. What is the average cost this year?

Answer 1

The average cost this year = $33,093.75

Explanation:

The computation of the average cost this year is shown below:

Given that

The average cost for the last year = $31,250

Increased percentage = 5.9%

Based on the above information, the average cost this year is

= The average cost for the last year × (1 + Increased percentage)

= $31,250 × (1 + 0.059)

= $31,250 × 1.059

= $33,093.75