How much do you save in present value terms by taking the cheaper alternative?

Your sending your daughter to a prestigious private college starting next year. She will attend for Show more Your sending your daughter to a prestigious private college starting next year. She will attend for four years. The current cost for one year is $60000 but is expected to rise 2% per year over the next 10 years. The school has a tuition stabilization plan whereby you can pay for the entire four years by writing a single check for $240000 when your daughter begins college. Otherwise you simply pay each years tuition as you go. If your investments earn 6% per year should you pay as you go or take the tuition stabilization plan? How much do you save in present value terms by taking the cheaper alternative? GIve your answer to the nearest dollar with no dollar sign and no commas. For example 13478. Show less

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