46. Your younger sister, Brittany, will start college in five years. She has justinformed your parents that she wants to go to Eastern State U., which will cost$30,000 per year for four years (costs assumed to come at the end of each year).Anticipating Brittany's ambitions, your parents started investing $5,000 peryear five years ago and will continue to do so for five more years.How much more will your parents have to invest each year for the nextfive years to have the necessary funds for Brittany's education? Use 10 percentas the appropriate interest rate throughout this problem (for discounting orcompounding). Round all values to whole numbers.Annuityconsideration(LO4)47. Brittany (from Problem 46) is now 18 years old (five years have passed),and she wants to get married instead of going to college. Your parents haveaccumulated the necessary funds for her education.Instead of funding her schooling, your parents are paying $10,000 for hercurrent wedding and plan to take year-end vacations costing $3,000 per year forthe next three years.Specialconsiderations ofannuities and timeperiods(LO4)How much money will your parents have at the end of three years to helpyou with graduate school, which you will start then? You plan to work on amaster's and perhaps a PhD. If graduate school costs $32,600 per year,approximately how long will you be able to stay in school based on thesefunds? Use 10 percent as the appropriate interest rate throughout this problem.Round all values to whole numbers.www.mhhe.com/bhd14e

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46. Your younger sister, Brittany, will start college in five years. She has just informed your parents that she wants to go to Eastern State U., which will cost $30,000 per year for four years (costs assumed to come at the end of each year). Anticipating Brittany's ambitions, your parents started investing $5,000 per year five years ago and will continue to do so for five more years. How much more will your parents have to invest each year for the next five years to have the necessary funds for Brittany's education? Use 10 percent as the appropriate interest rate throughout this problem (for discounting or compounding). Round all values to whole numbers.

46. Your younger sister, Brittany, will start college in five years. She has just informed your parents that she wants to go to Eastern State U., which will cost $30,000 per year for four years (costs assumed to come at the end of each year). Anticipating Brittany's ambitions, your parents started investing $5,000 per year five years ago and will continue to do so for five more years. How much more will your parents have to invest each year for the next five years to have the necessary funds for Brittany's education? Use 10 percent as the appropriate interest rate throughout this problem (for discounting or compounding). Round all values to whole numbers.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 52P

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46. Your younger sister, Brittany, will start college in five years. She has just informed your parents that she wants to go to Eastern State U., which will cost $30,000 per year for four years (costs assumed to come at the end of each year). Anticipating Brittany's ambitions, your parents started investing $5,000 per year five years ago and will continue to do so for five more years. How much more will your parents have to invest each year for the next five years to have the necessary funds for Brittany's education? Use 10 percent as the appropriate interest rate throughout this problem (for discounting or compounding). Round all values to whole numbers. 47. Brittany (from Problem 46) is now 18 years old (five years have passed), and she wants to get married instead of going to college. Your parents have accumulated the necessary funds for her education. Instead of funding her schooling, your parents are paying $10.000 for her current wedding and plan to take year-end vacations…
Your younger sister, Brittany, will start college in five years. She has just informed your parents that she wants to go to Eastern State U., which will cost $30,000 per year for four years (cost assumed to come at the end of each year). Anticipating Brittany’s ambitions, your parents started investing $5,000 per year five years ago and will continue to do so for five more years. How much more will your parents have to invest each year for the next five years to have the necessary funds for Brittany’s education? Use 10 percent as the appropriate interest rate throughout this problem (for discounting or compounding). Round all values to whole numbers.
Your younger sister, Linda, will start college in five years. She has just informed your parents that she wants to go to Hampton University, which will cost $45,000 per year for four years (cost assumed to come at the end of each year). Anticipating Linda’s ambitions, your parents started investing $6,500 per year five years ago and will continue to do so for five more years. Use 11 percent as the appropriate interest rate throughout this problem (for discounting or compounding). How much will your parents have to save each year (A?) for the next five years in addition to the $6,500 they are currently saving to have the necessary funds for Linda's education? Use Appendix C and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Sharpy and Jane are saving for the college education of their newborn son, Kasuba. The couple estimate that college expenses will run K30,000 per year when their son reaches college in 18 years. The annual interest rate over the next few decades will be 14 percent.How much money must they deposit in the bank each year so that their son will be completely supported through four years of college? To simplify the calculations, assume that Kasuba is born today. His parents will make the first of his four annual tuition payments on his 18th birthday. They will make equal bank deposits on each of his first 17 birthdays, but no deposit at date 0.
A father wants to help provide a college education for his young son. He can afford to invest $600/yr. for the next 4 years, beginning on the boy’s fourth birthday. He wishes to give him $4000 on her 18th, 19th, 20th, and 21st birthdays, for a total of $16,000. Assuming 5% interest, what uniform annual investment will he have to make on the son’s 8th through 17th birthdays?