Question 1
Your sister wants to attend university. She is14years old and expects to begin university the year she turns 18. If university tuition is currently $12,000 annually, and inflation is 3.5%, what is the expected tuition cost of your sister’s first year?
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$12,093
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$13,770
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$14,286
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$15,000
Question 2
Your subscription to Investing Wisely Weekly is about to expire. You plan to subscribe to the magazine for the rest of your life, and you can renew it by paying $80annually, beginning immediately, or you can get a lifetime subscription for $820, also payable immediately. Assuming you can earn6% on your funds and the annual renewal rate will remain constant, how many years must you live to make the lifetime subscription the better buy? Round fractional years up. (Hint: Be sure to remember that you are solving for how many years you must live, not for how many payments must be made.)
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12
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13
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14
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15
Body plan of a flatworm.
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