he 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.
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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.
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- Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years. What Is the Investments internal rate of return?You 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?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)?
- 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?To pay for university, you have just taken out a $1000 government loan that makes you pay $126 per year for 25 years. Calculate the yield to maturity if you start making payments exactly one year from now. If you start making these payments after your graduation, i.e. exactly three years from now,Suppose it costs $18,000 per year (in early 2014 dollars) for tuition, room, board, and living expenses to attend a public university in the Southeastern United States. Solve, a. If inflation averages 8% per year, what is the total cost of a four-year college education starting in 2024 (i.e., 10 years later)? b. Starting in January of 2014, what monthly savings amount must be put aside to pay for this four-year college education? Assume your savings account earns 6% per year, compounded monthly (0.5% per month).
- If the price of attending Big Benefits University is $8,000 a year for tuition, fees, books, and and $25,000 in foregone earnings, what is the marginal cost of attending, if it takes you 5 years to graduate, and you assume a 3% annual inflation rate? If the average college graduate makes $38,000 more every year than the average high school graduate, what is the cumulative marginal benefit of a college education if the average college graduate works for 40 years, assuming a 3% inflation rate? c.In this scenario does it make sense to go to college, explain your answer.ABC would like to hire two loan collectors to speed up its collection process. Each of the loan collectors will be given total annual benefits of P150000 per year. The entity earns P30000000 in sales, 10% of which are cash. The entity has a 365-day per year and a minimum required rate of return of 10%. the current average age of receivables is 70 days but with the loan collectors, it is forecasted to decrease to 30 days. How much is the net benefit or cost of this option?To pay for university, you have just taken out a $1000 government loan that makes you pay $126 per year for 25 years. Calculate the yield to maturity if you start making payments exactly one year from now. If you start making these payments after your graduation, i.e. exactly three years from now, is If the interest rate was 12%, then the present discounted values on the payment on the government loan will be less than $1,000 amount of loan because they do not start for two years. That is the reason why the Interest rate must be less than 12% in order to the present discounted value adds up to $1,000 loan amount
- Because you study at AUIS when you graduate, we expect you to earn $150 more a month than another student who is graduated from another university in Iraq. If you invest and earn 10% interest annually compounding semi-annually on the extra $150 you have earned for your entire working life from age of (22 – 65). What extra value studying at AUIS has given to you? in another-word, what is the future value of the extra money you have earned?Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tilie? China Manufàcturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what wil the dollar amount of sales be in year five? Dan and Jia are newlyweds and have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo worth in 5 years if inflation is expected to be 8 percent? You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you Jeave the money invested for another 5 years how much will you have in the 15th year? If you deposit $45,000 into an account earming 4%…Roger Sterling has decided to buy an ad agency and is going to finance the purchase with seller financing-that is, a loan from the current owners of the agency. The loan will be for 2,100,000 financed at an APR of 8 percent compounded monthly. This loan will be paid off over 7 years with end o month payments, along with a 600,000 balloon payment at the end of year 7. That is, the 2.1 million loan will be paid off with monthly payments, and there will also be a final payment of 600,000 at the end of the final month. How much will the monthly payments be?
