Clayton is a three-year-old boy (i.e., age 3) and he will go to college at...
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Clayton is a three-year-old boy (i.e., age 3) and he will go to college at age 18 (i.e., at t=15). Annual tuition at his dream college will be $50,000. Assume that Clayton will spend 4 years in college and that the interest rate will remain at 7% in the future. You will pay the tuition at the beginning of each college year (i.e., the first tuition is due in 15 years at t=15, and so on). What is the present value of four years of college tuitions, evaluated today (i.e., at t=0)?
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