Your Son Is About to Start Kindergarten in a Private

question 62

Multiple Choice

Your son is about to start kindergarten in a private school.Currently,the tuition is $12,000 per year,payable at the end of the school year.You expect annual tuition increases to average 6% per year over the next 13 years.Assuming that your 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

---

Definitions:

Tire Cold Inflation

The pressure in a tire before it has been driven on and warmed up, which is crucial for accurate inflation levels.

Heavy-Duty Truck

A large truck designed for carrying heavy loads, often used in commercial transport and construction.

Radial Tire

A tire with circumferential belts in which the plies run at right angles to the beads.

Bias-Ply Tires

Tires constructed with layers of fabric with cords laid at a bias to the tread centerline, offering a different performance and durability compared to radial tires.