Solve completely with all steps

Which house detailed in the table below has the lower present worth (is cheaper overall)? Use the following assumptions: i=5% . The houses are identical . You will have one child . Your child will be in school for 8 years . You are making this decision 1 year before the first annual tuition payment is due . Only consider the costs shown in the table below; no taxes, etc. . All payments are annual . Your answer can be an estimate if you show enough of the supporting work "Cheaper" House "Expensive" House Purchase cost $500,000 $600,000 Private school annual tuition cost $30,000/yr $0