Question

The average cost of a 4-year college education is projected to be $120,000 in 16 years....

The average cost of a 4-year college education is projected to be $120,000 in 16 years. How much money should be invested now at 6%, compounded quarterly, to provide $120,000 in 16 years?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
You are currently saving for your child's college education. The current cost of college is $10,000...
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 $25,000 in an account which earns 6 percent after taxes. You would like to have all...
to establish a trustfund of 120,000$, 3 years from now at an interest rate of 20%...
to establish a trustfund of 120,000$, 3 years from now at an interest rate of 20% compounded quarterly. how much money would i have to set aside now? A.) 120,000(1.05)^-12 B.) 120,000(1.2)^-12 C.)120,000(1.05)^-60 D.)120,000(1.2)^-60 E.)120,000e^-0.6
Suppose that some parents begin saving for their child’s college education. They currently have 15 years...
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...
Mathew Weir plans to pay for his son’s college education for 4 years starting 8 years...
Mathew Weir plans to pay for his son’s college education for 4 years starting 8 years from today. He estimates the annual tuition cost at $45,000 per year, when his son starts college. The tuition fees are payable at the beginning of each year. How much money must Matthew invest every year, starting one year from today, for the next seven years? Assume the investment earns 9 percent annually.
Your child is currently 2 years old. You plan to save for your child’s college education...
Your child is currently 2 years old. You plan to save for your child’s college education expenses by depositing 5% of your annual salary into an account that pays 6% interest compounded annually. If your salary is $100,000 next year when you make the first deposit, and you expect your salary to grow at 4% a year after that. How much do you have saved in 16 years when your child goes to college?
You are saving for your child’s college education. Tuition will be $30,000 each year for four...
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?
Landon and Wendy have a new grandson. How much money should they invest now so that...
Landon and Wendy have a new grandson. How much money should they invest now so that he will have $58,000 for his college education in 18 years? The money is invested at 7.3% compounded semiannually.
Your cousin is currently 12 years old. She will be going to college in 6 years....
Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $ 120,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.5 % per​ year, how much money do they need to put into the account today to ensure that they will have $ 120,000 in 6 ​years?
As a savings plan to guarantee their child's college education, a couple decides to deposit $...
As a savings plan to guarantee their child's college education, a couple decides to deposit $ 100 a month into a bank account that pays interest at a rate of 6% per year compounded monthly. If the savings plan started when the child was 6 years old, how much money will he have accumulated when he turns 18? Please show process.
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly. How much will be the total you have at the end of the time? 2. How much money will you have to deposit now if you wish to have $5,000 at the end of 8 years. Interest is to be at the rate of 6% compounded semiannually? 3. In the California “Million Dollar Lottery” a winner is paid...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT