You wish to deposit a sum of money now into an account that earns 8% to pay for the next 5 years of out-of-state tuition in order to obtain a combined bachelors and masters degree. The annual expenses are currently $22,000. The inflation rate is 5% per year. Calculate how much you need to deposit now in actual and real dollars.

Answer rating: 100% (QA)

To calculate how much you need to deposit now in actual and real dollars we can use the present valu... View the full answer