Price indexes can be used to compare prices across different periods. Suppose that a year of tuition for college at public institutions averaged a cost of â$ in 1989 and that the CPI index was in 1989. If the CPI index was inâ 2009, then the cost of tuition inâ 2009, as the result ofâ inflation, would equal â$ . â(Enter your response rounded to the nearest wholeâ number.) Suppose that the actual average cost of tuition in 2009 was â$. Relative to the expected cost computedâ above, the cost of tuition increased by the same as less than the amount of inflation.

Question attached

1. $3586

2. More than the amount of inflation

Explanation:

Consumer price index 1989 = 114

Price 1989 = $1817

Price for 2009=Consumer price index for 2009 / Consumer price jndex 1989 = Price 2009 / Price 1989

= 225 / 114 = Price 2009 / $1817

= Price for 2009 = $3586

cost of tuition increased in 2009 by = $3307 that is 6893 - 3586 more than amount of inflation

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

the answerr would be 1