Question

You are saving for the college education of your two children. They are two years apart in age; one will begin college 13 years from today and the other will begin 15 years from today. You estimate your children’s college expenses to be $39,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7.3 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume your children will be on the four-year plan. How much money must you deposit in an account each year to fund your children’s education? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer #1

You are saving for the college education of your two children.
They are two years apart in age; one will begin college 13 years
from today and the other will begin 15 years from today. You
estimate your children’s college expenses to be $39,000 per year
per child, payable at the beginning of each school year. The annual
interest rate is 7.3 percent. Your deposits begin one year from
today. You will make your last deposit when your oldest child...

You are saving for the college education of your two children.
They are two years apart in age; one will begin college 15 years
from today and the other will begin 17 years from today. You
estimate your children’s college expenses to be $43,000 per year
per child, payable at the beginning of each school year. The
appropriate interest rate is 7.3 percent. Your deposits begin one
year from today. You will make your last deposit when your oldest
child...

You are saving for the college education of your two children.
They are two years apart in age; one will begin college 15 years
from today and the other will begin 17 years from today. You
estimate your children’s college expenses to be $55,000 per year
per child, payable at the beginning of each school year. The annual
interest rate is 9.2 percent. How much money must you deposit in an
account each year to fund your children’s education? Your...

Bob and Brad are preparing for the collage education of their
two children. The eldest child will start her University studies 6
years from today while the second will enter University 8 years
from today. Bob and Brad estimate collage expenses to be $65,000
per year per child, payable at the beginning of each school year
with each child spending 4 years in University.
Draw the timeline for this problem.
How much must they deposit each year if they begin...

Joseph and Raine Jones want to begin saving yearly for
the college education of their children. They have two children, a
1-year-old and a 5-year-old. They would like to make the first
contribution to the children's college fund a year from today. They
assume the children will begin their college education when they
reach the age of 18. They would like each child to attend an
in-state public university and the current cost of college is
$23,000 each year per...

You are currently saving for your child's college education. The
current cost of college is $10,000 a year. You expect that college
costs will continue to increase at a rate of 5 percent a year. Your
child is scheduled to begin attending a four-year college 10 years
from now (i.e., college payments will be made at t=10, t=11, t=12,
and t=13). You currently have $25,000 in an account which earns 6
percent after taxes. You would like to have all...

You are currently saving for your child's college education. The
current cost of college is $10,000 a year. You expect that college
costs will continue to increase at a rate of 5 percent a year. Your
child is scheduled to begin attending a four-year college 10 years
from now (i.e., college payments will be made at t=10, t=11, t=12,
and t=13). You currently have $25,000 in an account which earns 6
percent after taxes. You would like to have all...

You are saving for your child’s college education. Tuition will
be $30,000 each year for four years, with the first tuition payment
due 18 years from today. • How much do you need to deposit today in
a bank account that earns 6% annual interest from now through the
end of your child’s college education so that you will have enough
money to meet all the tuition payments?

You are saving for the college education of your child. You
estimate your child's college expenses to be $30,000 per year and
payable at the beginning of each academic year. The annual interest
rate is 5% and it is not expected to change. You will also have to
pay $17,000 at the end of year 3 and $1,000 at the end of year
4.
At the point your child is about to start college, what is the
present value of...

Suppose that some parents begin saving for their child’s college
education. They currently
have 15 years until their child starts college. Current tuition,
room, and board costs $10000
per year. Assume these costs will grow at 7% per year for the next
20 years. Also assume it
will take four years to graduate.
(a) Calculate the costs for tuition, room, and board for these
parents’ child 16, 17, 18, and
19 years from now.
(b) How much would these parents...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 9 minutes ago

asked 12 minutes ago

asked 18 minutes ago

asked 25 minutes ago

asked 28 minutes ago

asked 29 minutes ago

asked 39 minutes ago

asked 41 minutes ago

asked 44 minutes ago

asked 51 minutes ago

asked 53 minutes ago

asked 54 minutes ago