The cost of tuition at public universities has been steadily increasing for many years. One Midwestern university pledged to keep the tuition constant for 4 years for all students who finished in the top 3% of their class. One such student who liked research planned to enroll at the university and continue there until earning a PhD degree (a total time of 9 years). If the tuition for the first 4 years will be $7200 per year and it increases by 5% per year for the next 5 years, what is the present worth of the tuition cost at an interest rate of 8% per year?
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