My respect for professors has plummetted

Started Sep 16, 2013 | Discussions thread
peevee1 Veteran Member • Posts: 6,247
Re: Except, your figure is wrong as well

Walking Dead wrote:

Great Bustard wrote:

Walking Dead wrote:

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:

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

Except 2012-1973=39, not 25.

Defender of Truth, Justice, and the American Way

Are you implying not being able to read, comprehend or subtract is an American way?

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