The consumer price index of education in January 2017 was 251.126. In January 2018 the CPI for education was 257.308. If annual tuition at a public university was $5,500 in January 2017, What should the same tuition cost (in dollars) in January 2018 if the school increased tuition to keep pace with the CPI? Round your answer to the nearest cent.

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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter11: Investment Planning
Section: Chapter Questions
Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...
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The consumer price index of education in January 2017 was 251.126. In January 2018 the CPI for education was 257.308. If annual tuition at a public university was $5,500 in January 2017, What should the same tuition cost (in dollars) in January 2018 if the school increased tuition to keep pace with the CPI? Round your answer to the nearest cent. 
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When the amount is needed to be revised as per new CPI index, then the fraction of new CPI over old CPI is considered.

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