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?
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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