Score: 0 of 1 pt Question Help P3-13 (similar to) Present value. Prestigious University is...
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Score: 0 of 1 pt Question Help P3-13 (similar to) Present value. Prestigious University is offering a new admission and tuition payment plan for all alumni. On the birth of a child, parents can guarantee admission to Prestigious if they pay the first year's tuition. The university will pay an annual rate of return of 7% on the deposited tuition, and a full refund will be available if the child chooses another university. The tuition is expected to be $18,000 a year at Prestigious 20 years from now. What would parents pay today if they just gave birth to a new baby and the child will attend college in 20 years? How much is the required payment to secure admission for their child if the interest rate fails to 3%? ies OU sest What would parents pay today if they just gave birth to a new baby and the child will attend college in 20 years? (Round to the nearest cent) sti
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