BusterStronghart@Gmail.com
Inflation Rate Horace Mann tuition. 1955 ($917)thru 2006 ($30,000).
So? Mathematicians: If you still have your slipsticks, what is the average
> annual HM tuition inflation rate anyway?
Well, the current tool of choice is a spreadsheet...
> $917 in 1955, and $30,000, in 2006?
Inflation rate is generally based on a single step. According to http://inflationdata.com/Inflation/Inflation_Rate/InflationCalculator.asp,
the inflation rate from September, 1955 to September, 2006 was 654.28%.
That would mean that the 2006 tuition should be $6,916.75. Thus HM tuition has risen much faster than inflation -- in fact, the inflation rate for HM tuition alone is 3171.54%.
It is well-known that tuition for tertiary education rises much faster than inflation, so one shouldn't be surprised that the same holds true for secondary education. One reason given for this anomalous rise is that one cannot increase the productivity of educators as fast as one can increase the productivity of workers in other fields. In fact, there are good reasons to assume that the productivity of educators cannot be increased at all, simply due to the nature of education.
But you asked for the AVERAGE ANNUAL HM tuition inflation rate. Although the concept of an average is a bit out of place in this context, we could argue that what you're asking for is a single yearly inflation rate that would increase the $917 to $30,000 over the 51-year period from 1955 to 2006. That's the same as asking for the compound interest rate that would result in a $917 investment in 1955 being worth $30,000 in 2006. The answer is very close to 7.0782%.
This is probably more than you wanted to know, but when you ask a professor a question that's the usual result. Happy New Year!
Thursday, January 04, 2007
BusterStronghart@Gmail.com
Inflation Rate Horace Mann tuition. 1955 ($917)thru 2006 ($30,000).
So? Mathematicians: If you still have your slipsticks, what is the average
> annual HM tuition inflation rate anyway?
Well, the current tool of choice is a spreadsheet...
> $917 in 1955, and $30,000, in 2006?
Inflation rate is generally based on a single step. According to http://inflationdata.com/Inflation/Inflation_Rate/InflationCalculator.asp,
the inflation rate from September, 1955 to September, 2006 was 654.28%.
That would mean that the 2006 tuition should be $6,916.75. Thus HM tuition has risen much faster than inflation -- in fact, the inflation rate for HM tuition alone is 3171.54%.
It is well-known that tuition for tertiary education rises much faster than inflation, so one shouldn't be surprised that the same holds true for secondary education. One reason given for this anomalous rise is that one cannot increase the productivity of educators as fast as one can increase the productivity of workers in other fields. In fact, there are good reasons to assume that the productivity of educators cannot be increased at all, simply due to the nature of education.
But you asked for the AVERAGE ANNUAL HM tuition inflation rate. Although the concept of an average is a bit out of place in this context, we could argue that what you're asking for is a single yearly inflation rate that would increase the $917 to $30,000 over the 51-year period from 1955 to 2006. That's the same as asking for the compound interest rate that would result in a $917 investment in 1955 being worth $30,000 in 2006. The answer is very close to 7.0782%.
This is probably more than you wanted to know, but when you ask a professor a question that's the usual result. Happy New Year!
Inflation Rate Horace Mann tuition. 1955 ($917)thru 2006 ($30,000).
So? Mathematicians: If you still have your slipsticks, what is the average
> annual HM tuition inflation rate anyway?
Well, the current tool of choice is a spreadsheet...
> $917 in 1955, and $30,000, in 2006?
Inflation rate is generally based on a single step. According to http://inflationdata.com/Inflation/Inflation_Rate/InflationCalculator.asp,
the inflation rate from September, 1955 to September, 2006 was 654.28%.
That would mean that the 2006 tuition should be $6,916.75. Thus HM tuition has risen much faster than inflation -- in fact, the inflation rate for HM tuition alone is 3171.54%.
It is well-known that tuition for tertiary education rises much faster than inflation, so one shouldn't be surprised that the same holds true for secondary education. One reason given for this anomalous rise is that one cannot increase the productivity of educators as fast as one can increase the productivity of workers in other fields. In fact, there are good reasons to assume that the productivity of educators cannot be increased at all, simply due to the nature of education.
But you asked for the AVERAGE ANNUAL HM tuition inflation rate. Although the concept of an average is a bit out of place in this context, we could argue that what you're asking for is a single yearly inflation rate that would increase the $917 to $30,000 over the 51-year period from 1955 to 2006. That's the same as asking for the compound interest rate that would result in a $917 investment in 1955 being worth $30,000 in 2006. The answer is very close to 7.0782%.
This is probably more than you wanted to know, but when you ask a professor a question that's the usual result. Happy New Year!
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