Question
1)The current cost of graduate school tuition is $15,000 per year. The cost of tuition is rising at 6.00% per year. You plan to attend
1)The current cost of graduate school tuition is $15,000 per year. The cost of tuition is rising at 6.00% per year. You plan to attend graduate school for 2 years starting 2 years from now. How much do you have to invest today if your savings account earns 3.00% APR compounded annually to just fund your tuition?
Group of answer choices
A) $31,323
B) $32,754
C) $32,236
D) $30,437
2) You would like to purchase a vacation home in 6 years. The current price of such a home is $500,000 but the price of these types of homes is rising at a rate of 3% per year. How much would you have to invest today in nominal terms to exactly pay for the vacation home if your investments earn 5% APR (compounded annually) in nominal terms?
Group of answer choices
A) $445,510
B) $461,548
C) $373,108
D) $597,026
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