Problem
Assume that your private university's tuition is $28,000.
(a) If the inflation rate for tuition is 5% per year, calculate what the tuition will cost 20 years from now.
(b ) If the general inflation rate for the economy is 3% per year, express that future tuition in today's dollars.
(c ) Calculate the amount you would have to invest today to pay for tuition costs 20, 21, 22, and 23 years from now. Assume you can invest at 7% per year, your income tax rate is 40% per year, and the tuition has to be paid atthe beginning ofthe year.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.