College tuition has been rising at a rate of 3% per year. Currently the average tuition of a state college is $14,300 per year. Andrea's son Trevor will begin college in 12 years. Andrea's portfolio is making 6% annually. How much does Andrea need to have set aside today/now to pay for 4 years of college for Trevor? (Note: Tuition will continue to change annually and Andrea's portfolio balance will continue to accrue interest while Trevor is in school. Also, tuition is due at the beginning of each year.) $36,786.09 $38,841.24 $57,200.00 $36,642.68

College tuition has been rising at a rate of 3% per year. Currently the average tuition of a state college is $14,300 per year. Andrea's son Trevor will begin college in 12 years. Andrea's portfolio is making 6% annually. How much does Andrea need to have set aside today/now to pay for 4 years of college for Trevor? (Note: Tuition will continue to change annually and Andrea's portfolio balance will continue to accrue interest while Trevor is in school. Also, tuition is due at the beginning of each year.) $36,786.09 $38,841.24 $57,200.00 $36,642.68

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 8E

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