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he college tuition is expected to increase with an average of 5% per year for the next 5 years. The annual cost of tuition at the beginning of your freshman year in college will be P 45,000. How much money will you and your parents have to deposit in a mutual fund account one year prior to your freshman year to pay for your tuition for the 5 years you will spend earning your degree in engineering?

he college tuition is expected to increase with an average of 5% per year for the next 5 years. The annual cost of tuition at the beginning of your freshman year in college will be P 45,000. How much money will you and your parents have to deposit in a mutual fund account one year prior to your freshman year to pay for your tuition for the 5 years you will spend earning your degree in engineering?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 33P
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The college tuition is expected to increase with an average of 5% per year for the next 5 years. The annual cost of tuition at the beginning of your freshman year in college will be P 45,000. How much money will you and your parents have to deposit in a mutual fund account one year prior to your freshman year to pay for your tuition for the 5 years you will spend earning your degree in engineering? The mutual fund will earn an average of 6% annual interest. a.) P 289, 675.38 b.) P 208, 296.77 c ) P 229, 489.25 d ) P 218, 406.41
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