Determine the future worth at the end of year

Assignment Help Macroeconomics

Reference no: EM132138876

Question - 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?

Determine the future worth at the end of year 10 of a cash flow series that starts 2 years from now at $125,000 and decreases by 8% per year. Use an interest rate of 8% per year.

Reference no: EM132138876

Questions Cloud

What would be the socially efficient level : A collectivity consists of three persons, A, B, C. What would be the socially efficient level of x according to the Benefit principle or Samuelson condition

Explain the five types of business structures : Create a comparison matrix that shows the 5 types of business structures and compares and contrasts type of structure.

Determine which route should be selected : Two routes are under consideration for a new interstate highway segment. The long route would be 25 kilometers and would have an initial cost of $21 million.

The relationship between law and ethics : How have lower courts interpreted the Branzburg v. Hayes decision based on whether the cases involved civil, criminal, or grand jury proceedings?

Determine the future worth at the end of year : Determine the future worth at the end of year 10 of a cash flow series that starts 2 years from now at $125,000 and decreases by 8% per year

Discuss the implications of the absolute threshold : Many studies have shown that our sensory detection abilities decline as we grow older. Discuss the implications of the absolute threshold for marketers.

Find an equation of the least squares regression line : Find an equation of the least squares regression line. Round the slope and y-intercept value to two decimal places. Describe method for obtaining results

Explain the difference in the distribution mechanism : Explain the difference in the distribution mechanism for goods and services in the market and command systems. Discuss the implications of this difference.

Managerial decision making in organization : How would you measure the effectiveness of LP modeling in managerial decision making in an organization?

User Account

All Pages