Question

You want to invest on the education of your newborn daughter. You estimate that 5 years of undergraduate engineering will cost you $20,000 per year (from t=18 through t=22), and two years for graduate school will cost you $30,000 per year (t=23 and t=24). How much do you need to deposit yearly with 10% interest rate compounding yearly next 18 years to cover her education cost?

Answer #1

**Explanation:-**

**Please find attached the image which contains solution
for given question,**

**If you have any dought about thus answer dont give
dislike ,tell us your dought in the comment then i can explain,
Please rate me by giving me a like or thumb because it motivates me
to do more work,Thank you.**

Your daughter just turned 4 years old. You anticipate she will
start University when she turns 18. You would like to have funds in
a registered education savings plan (RESP) to fund her education at
that time. You anticipate she will spend 6 years in university, and
it will cost $20,000 per year. She will need the $20,000 at the
start of each school year. When she graduates (debt free) you would
also like her to have $40,000 for a...

You are saving up for your newborn daughter's education. You'd
like for her to be able to attend University 18 years from today.
Today's tuition, room and board at University is $23,000 per year
but college costs are expected to increase 6% per year for the next
18 years. Assume, for simplicity, that the cost of attending will
be constant her 4 years of college and that tuition payments are
due at the beginning of each year. Your investment account...

Suppose you have a newborn child and want to begin covering
estimated cost of tuition and expenses for four years of college
beginning 18 years from now. Your estimated cost is $40,000 per
year beginning at the end of year 18 and running through the end of
year 21 (4 years). Assume a nominal investment interest rate of 8%
compounded annually.
a. What is the value of the payments at the beginning
of year 18 (end of year 17)?
b....

Suppose you have a newborn child and want to begin covering the
estimated cost of tuition and expenses for four years of college
beginning 18 years from now.
Your estimated cost is $42,000 per year beginning at the end of
year 18 and running through the end of year 21 (4 years). Assume a
nominal interest of 15% compounded annually.
A) What is the value of the payments at the beginning of year 18
(end of year 17)?
B) How...

he wants to have a secure university education for his
lovely daughter Daisy. His daughter is now 13 years old. She plans
to enroll at the University of Professional Studies, Accra in 5
years, and it should take her 4 years to complete her education.
Currently, the cost per year (for everything – her food, clothing,
tuition, books, transportation, and so forth) is GH¢ 12,000 per
year. This cost is expected to remain constant throughout the
four-year university education. The...

You estimate that it will take five years to complete your
university education. Your parents want to invest enough money
today at 12 per cent to enable you to withdraw $5000 at the end of
each year for the next five years with nothing left at the end of
the five-year period. How much money do they need today?
please answer using Present value table

A couple with a newborn daughter wants to save for their
child’s college expenses in advance. The couple can establish a
college fund that pays 7% interest compounded daily. Assuming that
the child enters college at age 18, the parents estimate that an
amount of $22500 per year will be required to support the child’s
college expenses for four years of education. Determine the equal
annual amounts the couple must save until they send their child to
college. Assume that...

Assume that you are earning $30,000/year for all your working
years if you have just a high school diploma. However, your salary
will increase to $60,000 if you obtain a college degree (4 years
program). Thetuition costs for college are $6000/year. You graduate
from college when you are 22 and you will retire at 65. You can
invest money at 6%. Find the net value of the college
education.

1. You want to start saving for your daughter's college
education now. She will enter college at age 18 and will pay fees
of $5,000 at the end of each of the four years. You will start your
savings by making a deposit in one year and at the end of every
year until she begins college. If annual deposits of $3,960.46 will
allow you to reach your goal, how old is your daughter now? Assume
you can earn 6%...

Your daughter is born today and you want her to be a millionaire
by the time she is 35 years old. open an investment account that
promises to pay 12% per year. How much money must you deposit today
so your daughter will have $1,000,000 by her 35th birthday?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 26 minutes ago

asked 27 minutes ago

asked 28 minutes ago

asked 28 minutes ago

asked 28 minutes ago

asked 49 minutes ago

asked 51 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago