You are considering whether to pursue a higher degree after you finish your college study. The tuition for a two-year master program is 10000, andyourmonthlyincome willbe 100 higher in the first 10 years after your graduation. Ignoring other gains, will you choose to take part in this program if the interest rate is 6%7
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- A student plans to enroll at the university and plans to continue there until earning a PhD degree (a total time of 9 years). If the tuition for the first 4 years will be$7,200per year and it inereases by5%per year for the next 5 years, what is the present worth (in year 0 ) of the tuition cost at an interest rate of8%per year?. A student plans to enroll at the university and plans to continue there until earning a PhD degree (a total time of 9 years). If the tuition for the first 4 years will be $7,200 per year and it increases by 5% per year for the next 5 years, what is the present worth of the tuition cost at an interest rate of 8% per year?If you need to take out a $70,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.9% interest for 10 years, a federal unsubsidized loan with 5.9% interest for 10 years, or a private loan with 7.0% interest and a term of 16 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized. Part: 0 / 5 0 of 5 Parts Complete Part 1 of 5 (a) Find the total cost of the subsidized loan. The total cost of the subsidized loan is $ . Round your answer to two decimal places, if necessary. (b) Find the total cost of the unsidized loan. (c) find the total cost of the private loan. (d) Which loan ha the overall lowest loan,and how much would you save over the other options?
- If you need to take out a $70,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.9% interest for 10 years, a federal unsubsidized loan with 5.9% interest for 10 years, or a private loan with 7.0% interest and a term of 16 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized. A) Find the total cost of the subsidized loan? B) Find the total cost of the unsubsidized loan? C)Find the total cost of the private loan? D) Which loan has the overall lowest cost, and how much would you save over the other options? E) How much would the subsidized loan save you over the federal unsubsidized loan, and the savings on the private loan?If you need to take out a $10,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 6.7% interest for 10 years, a federal unsubsidized loan with 5.9% interest for 10 years, or a private loan with 7.0% interest and a term of 15 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized.If you need to take out a $50,000 student loan 2 years before graduating, which loan option will result in the lowest overall cost to you: a subsidized loan with 7.5% interest for 10 years, a federal unsubsidized loan with 5.9% interest for 10 years, or a private loan with 5.0% interest and a term of 15 years? How much would you save over the other options? All payments are deferred for 6 months after graduation and the interest is capitalized. A) Find the total cost of the subsidized loan? B) Find the total cost of the unsubsidized loan? C) Find the total cost of the private loan? D)Which loan has the overall lowest cost, and how much would you save over the other options? E) How much would the the subsidized loan save you over the federal unsubsidized loan? and how much would the private loan save you?
- Assume the total cost of a college education will be $359,000 when your child enters college in 15 years. You presently have $74,000 to invest.What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Assume the total cost of a college education will be $340,000 when your child enters college in 18 years. You presently have $54,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Assume the total cost of a university education will be €290,000 when your child enters college in 18 years. You presently have €40,000 to invest. Required: What annual rate of interest must you earn on your investment to cover the cost of your child’s university education? (Round your answer to 2 decimal places (e.g., 32.16).) Annual rate of interest %
- As a future graduate of the University of Minnesota, someday you would like to endow a scholarship (meaning give the university money in your name) to pay for tuition expenses for future UMN students. Assume you just graduated (congratulations!). You plan to work for fifteen years after graduation before endowing this scholarship (at the end of the fifteenth year AFTER graduation). Annual tuition at UMN is $10,000 today, and is expected to grow at the long-term average rate of inflation of 3% per year forever. Savings are expected to earn a return of 7% per year forever. a) The first tuition payment is due one year after the scholarship is endowed. How much will the tuition be when your scholarship makes the first payment? b) You would like the scholarship to pay all tuition for one student per year for the twenty years following the creation of the endowment, how much money do you need to endow the scholarship? c)If you would like the scholarship to pay for tuition for one student…After graduation, you decide that you can pay $203.24 per month extra on your student loan ( standard monthly payment is 302.99), which has a balance of $50,000 and 20 years of monthly payments remaining. The annual interest rate on the loan is 4% How many years early will you be able to pay off the loan? Please answer in excel.Assume the total cost of a college education will be $245,000 when your child enters college in 15 years. You presently have $108,000 to invest for this purpose. What rate of interest must you earn to cover the cost of your child's college educ?
