What is the present cost of the degree, Accounting Basics

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What is the present cost of the degree

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Q: Perry is a freshman. He estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $13,000 this year. He expects these costs to rise about $1500 each year while he is in college. If it will take him 5 years to earn his BS, what is the present cost of his degree at an interest rate of 6%? If he is expected to earn an extra $10,000 annually for 40 years after graduation, what is the present worth of his degree?

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