You Have Been Accepted into a Prestigious Private University in Southern

question 27

Multiple Choice

You have been accepted into a prestigious private university in Southern California - congratulations! Since no one from this school has ever graduated in only four years,you anticipate that you will need to make 10 semi-annual tuition payments of $25,000 each with the first cash flow six months from today.If you choose to discount these cash flows at an annual rate of 6%,what is the present value cost of tuition to attend your university of choice?

• A)$186,814.54
• B)$184,002.18
• C)$250,000.00
• D)$213,255.07

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Definitions:

Vestibule

An antechamber, hall, or lobby next to the outer door of a building, or an entryway into a larger space.

Auricle

The external portion of the ear; it collects sound waves and directs them into the ear canal.

Stapes

A tiny bone in the middle ear that plays a critical role in the process of hearing by transmitting sound vibrations from the middle ear to the inner ear.

Malleus

A small bone in the middle ear that plays a crucial role in the transmission of sound vibrations to the inner ear.