Re:Oregon Explores Novel Way to Fund College
by stephengillie on Thursday July 04, 2013 @11:43AM
(#5991127)
The embarrassing part about these posts is that my major focused on Business Finance...
(...and Information Systems, which I rolled into System Administration.)
Here's a breakdown at a couple of different interest rates of $1,776 in year 24 in today's dollars using annual compounding (it'd be a bit more lopsided using monthly):
To do this calculation correctly either the future payments need to be converted into today's dollars or interest on the original loan needs to added to it (i.e. calc in future dollars).[1]: http://en.wikipedia.org/wiki/Net_present_value