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The current cost of graduate school tuition is $12,000 per year. The cost of tuition is...

The current cost of graduate school tuition is $12,000 per year.
The cost of tuition is rising at 5.00% per year.
You plan to attend graduate school for 2 years starting 2 years from now.

How much do you have to invest today if your savings account earns 7.00% APR compounded annually to just fund your tuition?

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Answer #1

B24 12000(1+5%)3 20| Year | Cash flow | PVIF@7%| 21 Present value 1.000 $ 0.935 $ 0.873 $ 0.816 $ 0.763$ 0 23 2 3 $13,891.50 4 $14,586.08 11,339.60 11,127.65 25 27 Investment today $ 22,467.25

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