A college has made you the following offer: You can pay tuition each year as scheduled...
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A college has made you the following offer: You can pay tuition each year as scheduled or you can pay it all in one payment of $96,733.00 when you graduate in 4 years. Below, the tuition costs for the next four years are shown: YEAR (TIME) TUITION 0 $22,079.00 1 $24,084.00 2 $25,590.00 3 $26,686.00 Your mother, an astute banker, advises you to wait and pay at the end. You can earn 6.00% on your investments. If you save your tuition money instead of paying the college, what is the future value of your account at the end of the fourth year? HINT: Keep in mind that tuition is paid at the beginning of the school year, so the last payment is at the end of the third year (ie the beginning of the 4th year of school) A college has made you the following offer: You can pay tuition each year as scheduled or you can pay it all in one payment of $96,733.00 when you graduate in 4 years. Below, the tuition costs for the next four years are shown: YEAR (TIME) TUITION 0 $22,079.00 1 $24,084.00 2 $25,590.00 3 $26,686.00 Your mother, an astute banker, advises you to wait and pay at the end. You can earn 6.00% on your investments. If you save your tuition money instead of paying the college, what is the future value of your account at the end of the fourth year? HINT: Keep in mind that tuition is paid at the beginning of the school year, so the last payment is at the end of the third year (ie the beginning of the 4th year of school)
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