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Fle Edit View History Bookmarks People Window Help 7 , 100% Tue Sep 11 10:53 AM

ID: 2814708 • Letter: F

Question

Fle Edit View History Bookmarks People Window Help 7 , 100% Tue Sep 11 10:53 AM Shi J Do Homework - Jinchun Shi ace Secure https://www math 1 com Student PlayerHomework aspx?home orkid-492754012Squestionide1siush defalsesclde109832 scent rwin e Fall 2018 Section 001 MW jinchun Shi &1 9/11/18 10:53 AM gle Homework: WS3 Fi Score: 0 of 1 pt Save 8 of 8 (7 complete) HY Score: 87.5%, 7 of 8 pts P3-7 (similar to) Question Help * Future value. Upstate University charges S22,000 a year n graduate tuition. T years. What is your expected graduate tuition in five years? rates are go gat 2% each year. You plan to enroll in graduate school in five n What is your expected graduate tution in five years? (Round to the nearest cent) Enter your answer in the answer box and then click Check Answer. Check Answer Clear All All parts showing

Explanation / Answer

a)

Future value of annuity = Annuity * [ ( 1 + r)n - 1] / r

Future value of annuity = 22,000 * [ (1 + 0.02)5 - 1] / 0.02

Future value of annuity = 22,000 * 5.20404

Future value of annuity = $114,488.9

b)

Future value of annuity = 22,000 * [ (1 + 0.0375)4 - 1] / 0.0375

Future value of annuity = 22,000 * 4.230678

Future value of annuity = $93,074.9