You figure that the total cost of university will be $ 130,000 per year 18 years from today. If your discount rate is 5% compounded annually, what is the present value today of four years of university costs starting 18 years from today?The present value of the university costs is $(Round to the nearest dollar.)
You figure that the total cost of university will be $ 130,000 per year 18 years from today. If your discount rate is 5% compounded annually, what is the present value today of four years of university costs starting 18 years from today?The present value of the university costs is $(Round to the nearest dollar.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![You figure that the total cost of university will be $
130,000 per year 18 years from today. If your discount
rate is 5% compounded annually, what is the present
value today of four years of university costs starting 18
years from today?The present value of the university
costs is $(Round to the nearest dollar.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F696b978b-7d0a-4e3b-a5cd-7d0865f85e36%2Fad3d2c06-a995-4208-bcff-420d20290afd%2F7frmrt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You figure that the total cost of university will be $
130,000 per year 18 years from today. If your discount
rate is 5% compounded annually, what is the present
value today of four years of university costs starting 18
years from today?The present value of the university
costs is $(Round to the nearest dollar.)
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