Question

For my youngest son, Eamon, we are counting on an athletic scholarship when he goes to college in 13 years. Assume the appropriate discount rate is 8% and that his scholarship will cover 4 full years at $65,500 tuition per year (assume the tuition bill is paid at the end of the year). How much is the scholarship worth the day he starts college? What is it worth today?

Answer #1

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