Your Son Is About to Start Kindergarten in a Private

question 58

Multiple Choice

Your son is about to start kindergarten in a private school.Currently,the tuition is $12,000 per year,payable at the start of the school year.You expect annual tuition increases to average 6% per year over the next 13 years.Assuming that you son remains in this private school through high school and that your current interest rate is 7%,then the present value of your son's private school education is closest to:

• A)$332,300
• B)$137,900
• C)$155,800
• D)$156,000

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Definitions:

Theodore Barber

A psychologist known for his work on hypnosis, suggestibility, and the placebo effect.

Nicholas Spanos

A psychologist known for his work on hypnosis, suggesting that hypnotic phenomena are the result of social and cognitive factors rather than altered states of consciousness.

Hypnosis

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes.

Theta Waves

Brainwave patterns associated with stages of sleep and meditation, typically indicating deep relaxation or the early stages of sleep.