Tuition costs are expected to increase at the rate

Reference no: EM13687794

Tuition costs are expected to increase at the rate of 8 percent per year. The first year's tuition is due 5 years from now and will cost $6,000. A fund is to be set up today to cover the tuition costs for 4 years in an account that will earn interest rate of 8 percent compounded annually. Draw the cash flow diagram showing all known (given) values and the unknown variables

Reference no: EM13687794

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Tuition costs are expected to increase at the rate : Tuition costs are expected to increase at the rate of 8 percent per year. The first year's tuition is due 5 years from now and will cost $6,000. A fund is to be set up today to cover the tuition costs for 4 years in an account that will earn interest..

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