Question

Khalid wants to pay one-half of the college costs for his daughter, Ahlam. She will be...

Khalid wants to pay one-half of the college costs for his daughter, Ahlam. She will be attending a private college with annual costs of OMR 20,000 today. Ahlam is 10 years old and will be starting college in eight years. If these costs are expected to increase annually by 8 percent, how much will Khalid need to provide for her first year of college?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The cost of the college today = OMR 20,000

Khalid will pay half of the college cost, hence as per todays cost , Khalid will pay OMR 10,000

The cost of the collge is expected to increase annually by 8 percent.

Cost of the college in eight years = Present cost ( 1 + growth rate )8

Cost of the college in eight years = OMR 20,000 ( 1 + 0.08)8  = 37,018.6

Cost provided by Khalid for daughter's first year of college =  37,018.6 2

Cost provided by Khalid for daughter's first year of college = OMR 18,509.3

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A father is now planning a savings program to put his daughter through college. She is...
A father is now planning a savings program to put his daughter through college. She is 13, she plans to enroll at the university in 5 years, and she should graduate in 4 years. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $13,000, but these costs are expected to increase by 6% annually. The college requires that this amount be paid at the start of the year. She now has $10,000 in...
A father is now planning a savings program to put his daughter through college. She is...
A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $13,000, but these costs are expected to increase by 6% annually. The college requires total payment at the start of the year. She now has $10,000 in a college savings account...
A father is now planning a savings program to put his daughter through college. She is...
A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $16,000, but these costs are expected to increase by 5% annually. The college requires total payment at the start of the year. She now has $9,000 in a college savings account...
A father is now planning a savings program to put his daughter through college. She is...
A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $12,000, but these costs are expected to increase by 7% annually. The college requires total payment at the start of the year. She now has $9,500 in a college savings account...
A father is now planning a savings program to put his daughter through college. She is...
A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $16,000, but these costs are expected to increase by 7% annually. The college requires total payment at the start of the year. She now has $8,000 in a college savings account...
A father is now planning a savings program to put his daughter through college. She is...
A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $13,000, but these costs are expected to increase by 5% annually. The college requires total payment at the start of the year. She now has $10,000 in a college savings account...
eBook A father is now planning a savings program to put his daughter through college. She...
eBook A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $19,000, but these costs are expected to increase by 6% annually. The college requires total payment at the start of the year. She now has $7,000 in a college savings...
33. A father is now planning a savings program to put his daughter through college. She...
33. A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $13,000, but these costs are expected to increase by 6% annually. The college requires total payment at the start of the year. She now has $10,000 in a college savings...
. Peter wants to save some money for his daughter Leah’s education. Tuition costs $16000 per...
. Peter wants to save some money for his daughter Leah’s education. Tuition costs $16000 per year in today’s dollars. His daughter was born today and will go to school starting at age 18. She will go to school for 4 years. Peter can earn 8% on his investments and tuition inflation is 5%. How much must Peter save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter’s...
he wants to have a secure university education for his lovely daughter Daisy. His daughter is...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT