Your son is about to start kindergarten in a private school Currently, the tuition is $15,000 per year, payable at the start of the school year You expect annual tuition increases to average 6 per year over the next 13 years Assuming that your son remains in this private school through high school and that your current interest rate is 6 , then the present value of your son's private school education is closest to A) $106,230 B) $156,000 C) $195,000 D) This problem cannot be solved E) None of the above Your son is about to start kindergarten in a private school Currently, the tuition is S15,000 per year, payable at the start of the school year You expect annual tuition increases to average 6 per year over the next 13 years Assuming that your son remains in this private school through high school and that your current interest rate is 6 , then the present value of your son's private school education is closest to A) $106,230 B) S156,000 C) $195,000 D) This problem cannot be solved E) None of the above

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 30, 2024

Your son is about to start kindergarten in a private school. Currently, the tuition is $15,000 per year, payable at the start of the school

Your son is about to start kindergarten in a private school. Currently, the tuition is $15,000 per year, payable at the start of the school year. You expect annual tuition increases to average 6% per year over the next 13 years. Assuming that your son remains in this private school through high school and that your current interest rate is 6%, then the present value of your son's private school education is closest to: A) $106,230 B) $156,000 C) $195,000 D) This problem cannot be solved. E) None of the above

image text in transcribed

Your son is about to start kindergarten in a private school. Currently, the tuition is S15,000 per year, payable at the start of the school year. You expect annual tuition increases to average 6% per year over the next 13 years. Assuming that your son remains in this private school through high school and that your current interest rate is 6%, then the present value of your son's private school education is closest to: A) $106,230 B) S156,000 C) $195,000 D) This problem cannot be solved. E) None of the above