Your daughter wants to go to the University of Michigan. She is already planning to start in 16 years (which is when her first tuition payment is due). Her tuition will be $18,687 per year for four years. What is the present value (today) of her tuition if the relevant discount rate is 8.56 percent per year? Group of answer choices $16,426.19 $159,645.21 $46,570.23 $46,570.23 $17,832.28
Your daughter wants to go to the University of Michigan. She is already planning to start in 16 years (which is when her first tuition payment is due). Her tuition will be $18,687 per year for four years. What is the present value (today) of her tuition if the relevant discount rate is 8.56 percent per year? Group of answer choices $16,426.19 $159,645.21 $46,570.23 $46,570.23 $17,832.28
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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Transcribed Image Text:Your daughter wants to go to the University of Michigan.
She is already planning to start in 16 years (which is
when her first tuition payment is due). Her tuition will be
$18,687 per year for four years. What is the present value
(today) of her tuition if the relevant discount rate is 8.56
percent per year?
Group of answer choices
$16,426.19
$159,645.21
$46,570.23
$46,570.23
$17,832.28
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