Determine the state shortfall in given condition

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Question: The NIU Foundation was started in 1996 and parents could start to pay for their child's college tuition before their child actually started college. the Illinois Legislators allowed NIU to set its own tuition rate, which caused a dramatic jump in costs for students. the cost for entering a newborn in 1996 was $10, 500. if the NIU Foundation fund grew at a rate of 4% per year, while tuition costs increased at a rate of 7% per year, determine the state's shortfall when a newborn enters college 18 years later.

Reference no: EM132017927

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