50 years from now “tuition at an average private university (over four years) will go from $64,000 to $455,000” (Block, 2005, p. 244). Interest rates applied over time are a direct reflection and indicator of how much a dollar amount will be worth, which is also known as the future value of a single amount...
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244). Interest rates applied over time are a direct reflection and indicator of how much a dollar amount will be worth, which is also known as the future value of a single amount. The present value of a single amount has an indirect relationship with future value. Present value implies that a discount rate is in effect, since the amount is worth less in the present than in the future...
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