25 Jul SHOULD YOU TAKE THE GOVERNMENT UP ON ITS OFFER TO PAY FOR YOUR COLLEGE?
Many college graduates feel as if their student loan payments drag on forever. Suppose that the gove Show more Many college graduates feel as if their student loan payments drag on forever. Suppose that the government offers the following arrangement: It will pay for your college in its entirety and in return you will make annual payments until the end of time. a. Suppose the government asks for $6000 each year for all of eternity. If interest rates currently sit at 4% what is the present value of the payments you will make? b. Your college charges $140000 for four years of quality education. Should you take the government up on its offer to pay for your college? What if your college charged $160000? Show less
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