In 2009, Internationale Outstanding University (IOU) had an enrollment of 25,822 undergraduates, each of whom paid $6,374 per year in tuition. In 2010, enrollment was 27,843 students, and tuition was raised 5.7%. In 2011, IOU received $186.8M in revenue from student tuition, and enrollment was 26,462 students. In 2012, it is estimated that tuition will be $7,057 and IOU needs to receive 4.9% more total revenue from tuition than in 2011. Assuming the 2012 revenue and student enrollment goals are met, what will be the average annual growth rate of tuition for 2009 to 2012?

In 2009, Internationale Outstanding University (IOU) had an enrollment of 25,822 undergraduates, each of whom paid $6,374 per year in tuition. In 2010, enrollment was 27,843 students, and tuition was raised 5.7%. In 2011, IOU received $186.8M in revenue from student tuition, and enrollment was 26,462 students. In 2012, it is estimated that tuition will be $7,057 and IOU needs to receive 4.9% more total revenue from tuition than in 2011. Assuming the 2012 revenue and student enrollment goals are met, what will be the average annual growth rate of tuition for 2009 to 2012?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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