My respect for professors has plummetted

Started 10 months ago | Discussions thread
Walking Dead
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Except, your figure is wrong as well
In reply to Great Bustard, 10 months ago

Great Bustard wrote:

Walking Dead wrote:

Brian wrote:

Maybe books have changed from a hundred years ago, but looking at my sons calc and physics books, they have changed little in the past 25 years.

The price certainly has though. I paid around $50 for my physics and calc books. my son is getting soaked for $200 for the calc and $220 for the physics book. Tuition at the school since I went is up 80% but books are up 200+%. You can't tell me it cost that much more to publish a book. A book that basically hasn't changed in 50 years.

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Brian

Brian, if the books were $50 each, 25 years ago, and now they are $200 and $220 each now, they have been going up an average of about 6% a year (compounded). This is pretty much in line with what inflation has been overall in the US. Some years it was higher, and in lower in others.

In other words, the books have basically stayed the same in price when you factor in inflation.

You're just getting old, and looking at what things cost in your 'days'. Maybe your son or you should take a class in business finance/management.

In my case, when I was attending college, the tuition and room and board was about $4000 a year. Today, some 40 years later, it is $42,000 a year. It seems like a lot, but when you break it down, it comes out to about 6% compounded a year.

Another way to look at it is to remember the story of how the Dutch settlers bought Manhattan Island for $24, worth of beads and trinkets in 1626, some 387 years ago. If the American natives had put the $24 into an account paying 6% interested a year, and it was allowed to grow for 387 years, that $24 would be worth $149,135,522,178.17, today. That's not too shabby.

The magic of compound interest.

...that's double the actual inflation rate over that time period:

http://inflationdata.com/Inflation/Inflation_Rate/Long_Term_Inflation.asp

From 1973 to 2012, the average inflation rate is 4.38% a year.

http://inflationdata.com/Inflation/Inflation_Rate/HistoricalInflation.a

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