Assume your child will enter college in 10 years. The total cost of a college education is estimated to be $60,000 at that time. You have $10,000 to invest today. What is the rate of interest that you must earn on your investment to cover the cost of your child's education? A. 17.21% B. 13.55% OC. 19.62% O D. 25.52%

Q: To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next…

A: Payment(PMT) per year is $2,000 Payment type is Beginning of each year. Time Period is 8 years.…

Q: A parent is now planning a savings program to put a daughter through college. She is 13 and plans to…

A: Present value is the current worth of the expected cash flows that is expected to be spent in some…

Q: a. How much money will your parents have at the end of four years to help you with graduate school,…

A: Answer A: Computation of present value using a financial calculator: N = 4 I/Y = 6% PMT = $10,000 FV…

Q: Assume the total cost of a college education will be $385,000 when your child enters college in 15…

A: Using excel Rate function

Q: education. I anticipate being able to earn 14% compounded annually fo compounded annually for years…

A: The money required today is present value of the future value of money considering the interest rate…

Q: Jennifer establishes an investment account to pay for college expenses for her daughter. She plans…

A: Future value of 4 withdraws  of $66000 can be calculated by following formula FV (rate, nper, pmt,…

Q: You are saving for the college education of your two children. One child will enter college in 5…

A: Present value of annuity formula along with future value of annuity formula is used to calculated…

Q: Marco needs $175,000 six years from today. How much should Marco deposit today into an investment…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: FUTURE VALUES Su Mei’s parents want to put enough money aside for her education by the time she goes…

A: Future values refer to those values that are calculated by using the present cash flows. An investor…

Q: 11. Suppose that a young couple has just had their first baby and they wish to ensure that enough…

A: In order to find the cost of the tuition after a certain period we are required to calculate the…

Q: 6. Calculating Rates of Return Assume the total cost of a college education will be $235,000 when…

A: Annual rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value = $235,000…

Q: A father is planning a savings program to put his daughter through university. His daughter is now…

A: Cost per year for 4 year = 12000 received from Grandfather = 7500 Rate of interest = 8%

Q: Assume the total cost of a college education will be $355,000 when your child enters college in 16…

A: interest rate is calculated using RATE function in excel We need to find interest rate at which…

Q: If your daughter is 5 and she plans to go to college or university in Canada when she is 18 years…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: SOLVE the following: i. Suppose that your five-year old daughter has just announced her desire to…

A: Money’s value declines with the time. Compounding and discounting are the two ways which considers…

Q: college fund. It the total cost of education will be $325,000 and you want to have this amount when…

A: Information Provided: Present value = $55,000 Future value = $325,000 Term = 16 years Payment = $0

Q: You are an incoming college freshman taking-up a four-year course. Suppose that you want to purchase…

A: Amount required for car after 4 years (FV) = P 750,000 Interest rate (r) = 9% Number of annual…

Q: Assume the total cost of a college education in Singapore will be SGD 250,000 when your child enters…

A: Annual rate of interest is the rate at which the interest amount is provided on the principal amount…

Q: You have saved $120,000 for your child to attend college. If it is in an account earning an annual…

A: Using excel PMT function

Q: Assume the total cost of a university education will be €290,000 when your child enters college in…

A: Future value = Present Value * (+rate)^No. of periods

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Given: Future value = $300,000 Present value = $60,000 Interest rate = ? Years = 18

Q: Assume the total cost of a college education will be $245,000 when your child enters college in 15…

A: Amount we have (present Value) is $108,000 Required Amount after 15 years (Future Value) is $245,000…

Q: 2. Jack and Jill have just had their first child. If college is expected to costP150,000 per year in…

A: given, FVA= P 150,000 N = 18  R= 6% LET ANNUAL DEPOSIT = A

Q: Assume the total cost of a college education will be $340,000 when your child enters college in 18…

A: Computation:

Q: Assume the total cost of a college education will be $365,000 when your child enters college in 18…

A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: Engineering Economics You need P40,000 per year for four years to go to college. Your father…

A: The worth of money changes with time; therefore, the TVM considers the value of money according to…

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A: We will use rate function in excel to calculate the return

Q: If the average college tuition cost is $40,000/year currently to go to college, what will it cost…

A: Step 1 Inflation is the aggregate level at which prices for goods and services are increasing.

Q: Assume the total cost of a college education will be $345,000 when your child enters college in 18…

A: The question is based on the calculation of required rate of return in future value of money…

Q: Assume the totol cost of a college educotion will be $200,000 when your child enters college in 16…

A: Future value required (FV) = $ 200,000 Investment amount (PV) = $ 55,000 Period (t) = 16 Years

Q: What annual rate of interest must you earn

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: In 25 years, you are hoping to have saved $120 000 towards your child’s university education. If you…

A: Yearly Investment ,PMT = $3000 Time Period = 25 years Future Goal = $120,000   Investing is a…

Q: What is the expected cost of college in each of the 4 years?

A: Since there are more than one ques in a single it is possible to do one part.

Q: Assume the total cost of a college education will be $380,000 when your child enters college in 16…

A: Future Value = Present value * (1+rate)^n Where, n = no. of years

Q: Assume the total cost of a college education will be $359,000 when your child enters college in 15…

A: Given, Amount required $359,000. Number of years 15 Amount available for investment is $74,000.

Q: Assume the total cost of a college education will be $365,000 when your child enters college in 18…

A: Value of money declines with the time. Compounding and discounting are two techniques to consider…

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A: The present value of annuity due is the present value of a series of cash payments that are expected…

Q: The average cost of a 4-year college education is projected to be $120,000.00 in 19 years. How much…

A: Given, The amount required is $120,000 Term is 19 years Rate is 4.5% compounded quarterly

Q: Assume the total cost of a college education will be $360,000 when your child enters college in 15…

A: Future value required (FV) = $360,000 Present value (PV) = $58,000 Period (n) = 15 Years

Q: Assume the total cost of a college education will be $250,000 when your child enters college in 17…

A: Using excel RATE function

Q: Suzanne starts her college education four years from now. For her college education, she is going to…

A: Quarterly Payment = $1,100 Time Period = 4 Years Interest Rate = 13%