Question: Using the appropriate function or routine in excel Consider attending one of the following two colleges as a full-time student. One is a public university
Using the appropriate function or routine in excel Consider attending one of the following two colleges as a full-time student. One is a public university with low tuition, while the other is a prestige university (they are both in the same city, so housing costs should be equal for each). Suppose you qualify for a partial scholarship at the private university. The financial information corresponding to attending each school is as follows.
Public university Private University
Tuition and related expenses four years at: $3500 per year $29,000 per year
Earnings per year for first 5 years $39,000 per year $56,000 per year
Earnings per year for next 10 years $72,000 per year $89,000 per year
Earnings per year for next 17 years $88,000 per year $118,000 per year
Earnings per year for next 12 years $74,000 per year $90,000 per year
Assuming the decision will be made solely on net financial returns grounds, a) Calculate the present value of associated with attending each college using a three percent (3%) interest (i.e. discount) rate, and b) repeat the calculation using an 9.5% interest rate. C) explain whether the difference in interest rates did or did not change the financial decision.
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