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The cost of tuition at public and private universities has been steadily increasing for many years. One New England university pledged to keep undergraduate tuition
The cost of tuition at public and private universities has been steadily increasing for many years. One New England university pledged to keep undergraduate tuition constant for 4 years for all students who finished in the top 5% of their class. One such student who liked research planned to enroll at the university and continue there until earning a Ph.D. degree (a total of 10 years). If tuition for the first 4 years is $35,000 per year and increases by $1, 400 per year for the next 5 years, what is the present worth of the total tuition cost (all 10 years) at an annual interest rate of 2% per year? (25)
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