You plan to start an elite 2 year MBA program on September 1, 2015. Tuition is $75,000 per year payable on that date, at the beginning of the school year. You expect tuition to increase by 6% in the second year. If the market interest rate is 3% per year, how much would you need to have in the bank on September 1, 2015 to fund both years of tuition?

75,000+((75,000X1.06)/1.03)=152,184.466?

To calculate how much you would need to have in the bank on September 1, 2015 to fund both years of tuition, you can follow these steps:

1. Calculate the total tuition for the first year: $75,000.
2. Calculate the total tuition for the second year, taking into account the 6% increase: $75,000 * 1.06 = $79,500.
3. Calculate the present value of the second year's tuition by discounting it to the present using the market interest rate. We need to discount the $79,500 back to September 1, 2015, which is one year in the future. Therefore, we divide by (1 + 3%) = 1.03: $79,500 / 1.03 = $77,184.47 (rounded to two decimal places).
4. Finally, add the total tuition for both years: $75,000 + $77,184.47 = $152,184.47 (rounded to two decimal places).

So you would need to have approximately $152,184.47 in the bank on September 1, 2015 to fund both years of tuition.