In two years Boris plans to enroll at Cleese University, a prestigious university in the Pacific Northwest of the USA
If the current tuition is $23,500 per year and is expected to increase at a rate of 6% per year, how much will Boris pay in tuition his first year of school? (His first tuition payment is exactly two years from today.) In his fourth year? (His last tuition payment is exactly 5 years from today) (Rounded to the nearest dollar.)
A) $23,500 and $29,668
B) $26,405 and $29,668
C) $23,500 and $31,448
D) $26,405 and $31,448
Answer: D
Explanation: D) FV = PV*(1 + r)n = $23,500 ∗ (1.06)2 = $26,405 and $23,500 ∗ (1.06)5 = $31,448
MODE = END
INPUT 2 6 -23,500 0 ?
KEY N I/Y PV PMT FV
CPT 26,405
MODE = END
INPUT 5 6 -23,500 0 ?
KEY N I/Y PV PMT FV
CPT 31,448
You might also like to view...
Richard received his credit card bill and noticed an error. He wrote to the company the next week, pointing out the error in his bill. Under the law, what is the credit card's obligation once it receives Richard's letter?
What will be an ideal response?
At the year end inventory count, if goods in transit are shipped FOB shipping point, they should be included in the inventory count of
a. The seller b. The buyer c. Both the seller and the buyer d. Neither the seller no the buyer
Increasing shelf presence and retailer dependence in the store is one of the reasons for introducing multiple brands in a category
Indicate whether the statement is true or false
What lesson is the text trying to convey by relating the example of ignition switch malfunctions in General Motors cars?
a. Failure to report unethical behavior can be extremely costly. b. People fail to report unethical behavior mainly out of concern for the person doing the action. c. Most unethical behaviors are intentional in nature. d. Failure to report unethical behavior is usually due to valuing short-term benefits over long-term benefits.