Your Son Is About to Start Kindergarten in a Private

question 13

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 6%,then the present value of your son's private school education is closest to:

• A) $106,230
• B) $156,000
• C) $137,900
• D) This problem cannot be solved.

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Definitions:

Impoverished Backgrounds

Conditions or environments characterized by a lack of financial, social, and educational resources.

Psychopharmacology

The study of how drugs affect a person's mood, thinking, behavior, and mind, primarily focused on the use of medications for psychiatric disorders.

Anxiety Disorder

A psychological condition identified by intense emotions of anxiety, worry, or fear which significantly disrupt daily life tasks.

Tardive Dyskinesia

A neurological syndrome resulting from long-term use of neuroleptic drugs, characterized by repetitive, involuntary movements.