You Have Been Accepted into a Prestigious Private University in Southern

Multiple Choice

You have been accepted into a prestigious private university in Southern California - congratulations! Since no one from this school has ever graduated in only four years,you anticipate that you will need to make 10 semi-annual tuition payments of $25,000 each with the first cash flow six months from today.If you choose to discount these cash flows at an annual rate of 6%,what is the present value cost of tuition to attend your university of choice?

A) $186,814.54
B) $184,002.18
C) $250,000.00
D) $213,255.07