Question

Tuition for the undergraduate degree is 10,000 per year and tuition for the masters degree program...

Tuition for the undergraduate degree is 10,000 per year and tuition for the masters degree program is 35,000 per year. If the tuition for each year is due at the beginning of the year, how much would you need to have today in order to cover the costs of youreducation? 4% rate of return. starting last year of undergrad with 2 years of masters

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Answer #1
Answer:
Calcualtion of amount you need today in order to cover the cost of your education.
Year Cash required Present value factor @ 4% Present value
0 $10,000 1.0000 10000.00
1 $35,000 0.9615 33653.85
2 $35,000 0.9246 32359.47
Total 76013.31
So, you would need to have today $76,013.31 in order to cover the cost of your education.
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