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Tuition costs are expected to increase at the rate of 8 percent per year. The first year's tuition is due 5 years from now and will cost $6,000. A fund is to be set up today to cover the tuition costs for 4 years in an account that will earn interest rate of 8 percent compounded annually. Draw the cash flow diagram showing all known (given) values and the unknown variables

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91227516

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