Your oldest daughter is about to start kindergarten in a private school. Tuition is $13,000 per year, payable at the beginning of the school year. You expect to keep your daughter in private school through high school. You expect tuition to increase at a rate of 6.8% per year over the 11 years of her schooling. What is the present value of your tuition payments if the interest rate is 6.8% per year? How much would you need to have in the bank now to fund all 11 years of tuition?

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Answer To calculate the present ... View the full answer