Your oldest daughter is about to start kindergarten in a private school. Tuition is $20,000 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% per year over the 13 years of her schooling. If the interest rate is 6% per year, how much would you need to have in the bank now to fund all 13 years of tuition? COTTE To fund all 13 years of tuition, you will need to have $ in the bank now. (Round to the nearest dollar.)
Your oldest daughter is about to start kindergarten in a private school. Tuition is $20,000 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% per year over the 13 years of her schooling. If the interest rate is 6% per year, how much would you need to have in the bank now to fund all 13 years of tuition? COTTE To fund all 13 years of tuition, you will need to have $ in the bank now. (Round to the nearest dollar.)
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 37P
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