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Assume your friend is starting college. Tuition will cost $10,000 in her freshman year, $10,500 in her sophomore, $11,400 in her junior year, and $12,000
Assume your friend is starting college. Tuition will cost $10,000 in her freshman year, $10,500 in her sophomore, $11,400 in her junior year, and $12,000 in her senior year. Also assume that tuition must be paid at the beginning of each year and that she can earn a 10% rate of interest on her money. Using a spreadsheet, determine how much she needs when she starts college and print your results. Be sure to label your work. Use the NPV function for this assignment and put the necessary inputs into it. Realize that the tuition is paid at the beginning of each year. Excel however assumes each payment comes at the end of each period. Hence, start with the sophomore year when entering the amounts. When you have found the present value of each payment from the sophomore year through the senior year simply add the cost for the freshman year to that value
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