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You just paid full tuition for upcoming your junior year in college. Your plan is to complete this year, then, for your last year in
You just paid full tuition for upcoming your junior year in college. Your plan is to complete this year, then, for your last year in college starting one year from now you will need to pay that final year of undergrad tuition. THEN, after college, you plan to go through a year DBA program this is a way better plan than law school Today's undergrad tuition you just paid was $ and these undergrad prices are expected to increase each year. Today's DBA price, per year, is $ but we expect this DBA price to increase per year every year. Tuition for each DBA year is due at the start of each year so the payments due for your DBA program come and years from now Your uncle offers to put you through school, and he will do so by depositing a single lump sum in an investment account, today, which projects a APR annual return.
a How large must your uncle's deposit be
b If your uncle were willingly to put the deposit amount in but you additionally qualified for a scholarship paying $ of your senioryear undergraduate costs and $ per year for each of the two years of your DBA costs, then how much would be left over in the account after you graduate with your DBA years from nowThese scholarship amounts are set, ie they will not grow above these levels due to inflation, etc. Assume the APR annual return rate continues to hold.
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