Dagny Taggart Is a Graduating College Senior and She Is

Multiple Choice

Dagny Taggart is a graduating college senior and she is considering the costs of going to medical school.Beginning next fall,Dagny expects medical school tuition to run $45,000 for the first year and she estimates that tuition will increase by 6% each year.If Dagny is able to invest her money in an account paying 8% interest per year,then the present value to Dagny of four years of medical school tuition is closest to:

A) $149,045
B) $155,930
C) $162,095
D) $180,000