4-59. Perry is a freshman. He estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $21.000 this year. He expects these costs to rise about $1500 each year while he is in college. If it will take him 5 years to earn his BS, what is the present cost of his degree at an interest rate of 4%? If he earns an extra $15,000 annually for 40 years, what is the present worth of his degree?

4-59. Perry is a freshman. He estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $21.000 this year. He expects these costs to rise about $1500 each year while he is in college. If it will take him 5 years to earn his BS, what is the present cost of his degree at an interest rate of 4%? If he earns an extra $15,000 annually for 40 years, what is the present worth of his degree?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4-59. Perry is a freshman. He estimates that the cost of tuition, books, room and board,
transportation, and other incidentals will be $21.000 this year. He expects these costs to rise
about $1500 each year while he is in college. If it will take him 5 years to earn his BS. what is
the present cost of his degree at an interest rate of 4%? If he earns an extra $15,000 annually for
40 years, what is the present worth of his degree?

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