Present value. Prestigious University is offering a new admission and tuition payment plan for all alumni. On the birth of a child. parents can...

Present value.

Present value. Prestigious University is offering a new admission and tuition payment plan for all alumni. On the birth of a child. parents can guarantee admission toPrestigious ifthey pay the first year‘s tuition. The university will pay an annual rate of return of 5% on the deposited tuition, and a full refund will be available if the childchooses another university. The tuition is expected to be $22,000 a year at Prestigious 19 years from now. What would parents pay today if theyjust gave birth to anew baby and the child will attend college in 19 years? How much is the required payment to secure admission for their child if the interest rate falls to 3.5%? What would parents pay today if theyjust gave birth to a new baby and the child will attend college in 19 years? $E| (Round to the nearest cent.)