Your Son Is About to Start Kindergarten in a Private

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 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