Problem
The cost of tuition at public and private universities has been steadily increasing for many years One New England university pledged to keep undergraduate tuition constant for 4 years for all students who finished in the top 5% of their class. One such student who liked research planned to enroll at the university and continue there until earning a Ph.D. degree (a total of 10 years) If tuition for the first 4 years is $35,000 per year and increases by $1, 400 per year for the next 5 years, what is the present worth of the total tuition cost (all 10 years) at an annual interest rate of 2% per year? Determine the future worth at the end of year 10 of a cash flow series that starts 2 years from now at $125,000 and decreases by 8% per year. Use an interest rate of 8% per 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.