Your university is running a special offer on tuition. this year's tuition cost is $16,000. next year's tuition cost is scheduled to be $16,640. the university offers to discount next year's tuition at a rate of 4% if you agree to pay both years' tuition in full today. how much is the total tuition bill today if you take the offer?

$32,000 is the total tuition cost if accept the offer.

Explanation:

This year tuition cost =  $16,000

Next year tuition cost (Future Value ) = $16,640

Tuition cost is payable in the beginning of the year.

16,000 is payable today and 16,640 payable after a year But to take the offer, it is paid today

Total Tuition bill = This year tuition cost + Present value of next year tuition cost

                           = $16,000 + Future Value (1 + r)

                           = $16,000 + ($16,640 / (1+ 0.04)

                           = $16,000 + $16,000

                           = $32,000

answer; i believe the correct answer is (form utility); good luck

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