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.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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