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 $ 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.
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 $ 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.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 33P
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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 $ 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.
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