You have an absolutely brilliant child who is six years old and will be attending a private college in twelve years. You know that a four-year college now costs at least $30,000 per year, including tuition, books, and room and board. The cost of sending a child to college has increased by 7 percent per year, and you believe this will be true for the next twelve years. How much will the annual tuition be when your child is eighteen

Respuesta :

Answer:

$270,263

Explanation:

Costs = $30,000 per year

Cost  for 4 years  = $30000*4 = $120,000

A = P(1+r/100)^n

A = 120000*(1+0.07/100)^12

A = 120000*2.252191

A = 270262.92

A = $270,263

Therefore, the annual tuition when the child is eighteen will be $270,263.