The financial aid office at your university has offered to pay your full annual tuition cost of $22,000 this year, as long as you maintain a grade point average of 3.00
If tuition costs rise at a rate of 6% per year while you are in college, but the financial aid office continues to pay exactly $22,000 per year for your tuition, how much out-of-pocket tuition costs will you have your senior year? NOTE: Think carefully about this problem when figuring the number of years from the start of your freshman year to the start of your senior year, assuming normal progress toward graduation in four years. Further, be aware that while tuition costs are rising your tuition is covered up to only $22,000. You must pay any excess tuition costs.
A) $0
B) $3,351
C) $4,202
D) $5,774
Answer: C
Explanation: C) FV = PV ∗ (1 + r)n - PV = $22,000 ∗ (1.06)3 - $22,000 = $26,202 - $22,000 = $4,202
You might also like to view...
Discuss the definition, recognition, and measurement of gains and losses
In the TWA v. Hardison case, the airline needed an employee to work on Saturdays, but the employee did not want to do so because of his religious beliefs. The Supreme Court held that TWA: A) was liable because it discriminated against the employee on religious grounds
B) was liable because it offered the employee no reasonable accommodation. C) was not liable because the employee's requests were illegal. D) was not liable because TWA offered a reasonable accommodation.
Organizations that typically provide an array of services to start-up companies along with a small amount of funding are referred to as:
A) angel investors. B) crowdfunders. C) incubators. D) venture capital investors.
What is the difference between a simple horizontal network and a vertical network?
What will be an ideal response?