Homework Answers
| Education year | Payment year | Fees | Fees | PV factor @ 9.75% | Present value | |
| 1 | 0 | 18000 | $18,000.00 | 1.0000 | $18,000.00 | |
| 2 | 1 | 18000*(1+2.5%)^1 | $18,450.00 | 0.9112 | $16,810.93 | |
| 3 | 2 | 18000*(1+2.5%)^2 | $18,911.25 | 0.8302 | $15,700.42 | |
| 4 | 3 | 18000*(1+2.5%)^3 | $19,384.03 | 0.7565 | $14,663.26 | |
| Total | $74,745.28 | Total investment | $65,174.61 |
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