Asked by Jordy

You plan to start an elite 2 year MBA program on September 1, 2015. Tuition is $75,000 per year payable on that date, at the beginning of the school year. You expect tuition to increase by 6% in the second year. If the market interest rate is 3% per year, how much would you need to have in the bank on September 1, 2015 to fund both years of tuition?

75,000+((75,000X1.06)/1.03)=152,184.466?