Assume that a college parking sticker today costs $90. If the cost of parking is increasing at the rate of 5% per year, how much will the college parking sticker cost in eight years?
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Assume that a college parking sticker today costs $90. If the cost of parking is increasing at the rate of
5% per year, how much will the college parking sticker cost in eight years?
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- If it cost $50,000 to attend a public university today, what would it cost to attend that same university 18 years from now assuming that the cost escalated at a rate of 6% per year (annual compounding)?You estimate that you will need $10,000 for education in 8 years. How much must you put away at the end of each year at 6 percent interest to have the college money ready? Show Time value of money imputsYou figure that the total cost of college will be $101,000 per year 18 years from today. If your discount rate is 10% compounded annually, what is the present value today of four years of college costs starting 18 years from today?
- To save money for a new house, you want to begin contributing money to a brokerage account. Your plan is to make ten contributions to the brokerage account. Each contribution will be for $2,500. The contributions will come at the beginning of each of the next 10 years, i.e., the first contribution will be made today at t = 0 and the final contribution will be made at t = 9. Assume that the brokerage account pays a 9 percent return with semi-annual compounding. How much money do you expect to have in the brokerage account nine years from now (t = 9)?To provide for university education fees, money needs to be saved today. What single amount is needed to provide for $6,000 in 6 years, $7,000 in 7 years, $8,000 dollars in 8 years and $9,000 dollars in 9 years at a rate of 4.5% per year?Suppose that you earned a bachelorʹs degree and now youʹre teaching middle school. The school district offers teachers the opportunity to take a year off to earn a masterʹs degree. To achieve this goal, you deposit $1500 at the end of every three months in an annuity that pays 5.5% compounded quarterly. How much will you have saved at the end of 6 years? Find the interest.
- It is likely that plane tickets will increase 6.5% in each of the next three years. The cost of the plane ticket at the end of the first year will be $150. How much money would need to be placed in a savings account now to have money to pay a student's travel home at the end of each year for the next 3 years? Assume savings account pay 8% annual interest.Upstate University charges $15,000 a year in graduate tuition. Tuition rates are growing at 3.5% each year. You plan to enroll in graduate school in six years. What is your expected graduate tuition in six years?The LA times recently carried a story that tuition could be increased in the University of California system by as much as 15% per year over the next four years. What would be the tuition in four years if the current tuition is 14, 100 per year now.
- Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Round your answers for the following questions to the nearest dollar. If Megan's tuition, fees, and expenditures for books this year total $15,000, what will they be during her senior year (three years from now), assuming costs rise 5 percent annually? (Hint: Use Appendix A-1 or the Garman/Forgue companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places. $ Megan is applying for a scholarship currently valued at $7,000 at the end of first year. If she is awarded it at the end of next year, how much is the scholarship worth in today's dollars, assuming inflation of 2 percent? (Hint: Use Appendix A-2 or the Garman/Forgue companion website.) Round Present Value of a Single Amount in intermediate calculations to four decimal places. $ Megan is already looking ahead to graduation…Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial questions for the next three years of school and beyond. Round your answers for the following questions to the nearest dollar. If Megan's tuition, fees, and expenditures for books this year total $24,000, what will they be during her senior year (three years from now), assuming costs rise 7 percent annually? (Hint: Use Appendix A-1 or the Garman/Forgue companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places. $ Megan is applying for a scholarship currently valued at $3,000 at the end of first year. If she is awarded it at the end of next year, how much is the scholarship worth in today's dollars, assuming inflation of 2 percent? (Hint: Use Appendix A-2 or the Garman/Forgue companion website.) Round Present Value of a Single Amount in intermediate calculations to four decimal places. $The cost of a new automobile is $12,000. If the interest rate is 4%, how much would you have to set aside now to provide this sum in four years? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. You have to pay $16,000 a year in school fees at the end of each of the next five years. If the interest rate is 7%, how much do you need to set aside today to cover these bills? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. You have invested $80,000 at 7%. After paying the above school fees, how much would remain at the end of the
