A high school graduate plans on going to medieal school in four years (after his undergraduate) and understands that it is expensive. Fortunately, his grandparents left him with $30,000 in a fund with strict instructions to only use it for medical school. The fund earns interest at a rate of 6%e, compounded semiannually. He understands finances enough to know that his grandparents' money will grow, but not enough to cover the $60,000 tuition that will be due in 4 years. He knows it will be his responsibility to pay the remainder, so he decides to save money each month at an APR of 12% to cover the cost. What is the dollar amount that he will need to put away each month in order to have enough to pay for school in four years?

A high school graduate plans on going to medieal school in four years (after his undergraduate) and understands that it is expensive. Fortunately, his grandparents left him with $30,000 in a fund with strict instructions to only use it for medical school. The fund earns interest at a rate of 6%e, compounded semiannually. He understands finances enough to know that his grandparents' money will grow, but not enough to cover the $60,000 tuition that will be due in 4 years. He knows it will be his responsibility to pay the remainder, so he decides to save money each month at an APR of 12% to cover the cost. What is the dollar amount that he will need to put away each month in order to have enough to pay for school in four years?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 54P

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