Okay am kind of lost, how will i compute the cost for tuition for the following years for public and private collegesin the years 2027, 2028, 2029, and 2030.
The chart is listed below.
Table I: Average Earnings of Year-Round Full-Time Works by Gender and Education Attainment in the U.S., 2004
Gender Less than 9th grade Some high school High school graduate Some college Associate degree Bachelor’s degree or more
Males $25,169 $29,768 $39,117 $47,160 $48,724 $83,819
Females $18,988 $21,025 $28,537 $32,280 $36,472 $54,078
Source: The New York Times 2007 Almanac, New York: Penguin, 2007. 341.
Table II: Tuition and fees at Private and Public 4-Year Colleges
1976-2006
Year
Private Public
1976-77 $2,272 $433
1980-81 3,617 804
1985-86 6,121 1,318
1990-91 9,340 1,908
1991-92 9,812 2,107
1992-93 10,448 2,334
1993-94 11,007 2,535
1994-95 11,719 2,705
1995-96 12,216 2,811
1996-97 12,994 2,975
1997-98 13,785 3,111
1998-99 14,709 3,247
1999-2000 15,518 3,362
2000-01 16,233 3,487
2001-02 17.272 3,725
2002-03 18,273 4,081
2003-04 19,710 4,694
2004-05 20,082 5,132
2005-06 21,235 5,491
Your next task is to help the Jeffersons determine how much money they will need to save in order to guarantee that they will have enough for both children’s tuitions for four years of college. In Table II you will find information about the rising tuition and fees for 4-year colleges in the US over the last thirty years. Using 1976 as the starting year, graph the data in this table. Your x-axis should represent time, starting in 1976, and your y-axis should represent tuition costs. Use two different colors to distinguish between costs at private colleges and costs at public colleges. The points will not be perfectly linear, but in each case, private and public, you can draw a line that comes close to connecting the points. Draw these two lines, and extend them at least as far as 2030.
Use your lines to approximate the costs at private and public colleges in the years 2027, 2028, 2029, and 2030. Use these figures to determine the total amount of money George and Maria need to save in order to pay tuition and fees for both children. The second paragraph of your report should explain your work in creating the graph, and show the Jeffersons how you reached the totals for amounts they must save, in both cases, public and private colleges.
Both Jeffersons are working now, but when the twins arrive in June, Maria will take some time off from full-time work. They want to arrange to have money automatically deposited on the first of every month to an education account, and they think that with only one of them working, they will be able to deposit at most $120/month in the account. You know that the best education account available right now pays an annual interest rate of 9% compounded monthly, and you also know the formula for calculating total amount in the account:
A(t) = P[(1+r/12)^12t – 1](1+12/r)
where A(t) = the amount in the savings account after t years
P = the amount of money invested each month (in this case $120)
r = the annual rate of interest, written as a decimal (in this case 0.09)
t = the number of years the money is kept in the account
Using the formula above, calculate for the Jeffersons the total amount that they will have in the education account in 18 years, assuming that they regularly deposit $120 in the account on the first of every month throughout the 18-year period.
Maria knows that taking care of twins will be a full-time job, but she also hopes to have the energy to do some tutoring on weekends when George can take care of the children. She thinks that she will be able to manage 6 hours/week of tutoring, for which she charges $40/hour. If she does find herself able to work those hours, she and George could deposit a total of $1080/month into the education savings account. Compute for them their 18-year total assuming the new monthly deposit.
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