Question
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $10,300
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $10,300 tuition payment is due in 6 months. After? that, the same payment is due every six months until you have made a total of 8 payments. The college offers a bank account that allows you to withdraw money every 6 months and has a fixed APR of 3.8% ?(with semiannual? compounding) guaranteed to remain the same over the next 4 years. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this? account, leaving the account empty when the last payment is made? (Note: Be careful not to round any intermediate steps less than six decimal? places.)
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