Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260316193
Author: Bodie
Publisher: MCG
Question
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Chapter 21, Problem 16PS
Summary Introduction

To determine:

Use spreadsheet 21.10 to assess the present value of a 1% increase in college tuition as a fraction of the present value of labor income.

Introduction:

College education creates a need of financing a large expenditure for few years. There is no need for any other planning tools to fund these large expenditure as they can be financed out of savings. The only effect it would have is reduced savings. Such reduction should only be allowed until cumulative savings are positive. In turn it would only effect the reduced retirement annuity.

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