a. How much money will your parents have at the end of four years to help you with graduate school, which you will start then? (Round your final answer to 2 decimal places.) Funds available for graduate school b. You plan to work on a master's and perhaps a PhD. If graduate school costs $30.820 per year, approximately how long will you be ahle to stay in school based on these funds? (Round your finel answer to 2 decimal places.)
a. How much money will your parents have at the end of four years to help you with graduate school, which you will start then? (Round your final answer to 2 decimal places.) Funds available for graduate school b. You plan to work on a master's and perhaps a PhD. If graduate school costs $30.820 per year, approximately how long will you be ahle to stay in school based on these funds? (Round your finel answer to 2 decimal places.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:Your parents have accumulated a $130,000 nest egg. They have been planning to use this money to pay college costs to be incurred
by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving
Courtney $34,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four
years. Use 6 percent as the appropriate interest rate throughout this problem, Use Anpendix A and Appendix D for an approximate
answer, but calculate your final answer using the formula and financial calculator methods.
a. How much money will your parents have at the end of four years to help you with graduate school, which you will start then? (Round
your final answer to 2 decimal places.)
ces
Funds available for graduate school
b. You plan to work on a master's and perhaps a PhD. If graduate school costs $30.820 per year, approximately how long will you be
able to stay in school based on these funds? (Round your finel answer to 2 decimal places.)
Number of years
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