You figure that the total cost of university will be $100,000 per year 18 years from today.

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You figure that the total cost of university will be $100,000 per year 18 years from today. If your discount rate is 8% compounded annually, what is the present value today of 4 years of university costs starting 18 years from today?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Fundamentals of Corporate Finance

ISBN: 978-0321818171

2nd Canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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