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Memphic Memphic
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6 years ago
Assuming that costs continue to increase an average of 4% per year, tuition and other costs for one year for this student in 18 years when she enters college will be closest to:
A) $12,500
B) $21,500
C) $320,568
D) $25,323
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
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Replies
wrote...
6 years ago
D
Explanation:  D) FV = PV(1 + i)N = $12,500(1.04)18 = $25,322.71
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