An elite law school will charge you $39,600.00 for your first year of tuition. This is due at the beginning of the year. You anticipate tuition to increase by 4.00% each year going forward. You will spend three years in the law program.

You are unsure what discount rate to use to value the opportunity. You have a conservative discount rate, 6.00%, and an aggressive rate of return, 9.00%.

Using the conservative discount rate, what is the value of the tuition the day you start the law school?