You decided to start saving for your child's college tuition. Your child will start college in...
You decided to start saving for your child's college tuition. Your child will start college in 25 years. There will be 4 annual tuition payments of $30,000 each. The first payment will be 25 years from now. You will start saving one year from now and will put aside the same amount at the end of every year for 25 years. How much do you have to save every year to have enough to pay the tuition payments. Your savings rate is 5% per annum.
Select one:
a. $6,390.15
b. $3,901.27
c. $2,340.34
d. $3,450.45
e. $5,603.24
Homework Answers
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You decided to start saving for your child's college tuition.
Your child will start college in...
You are saving for your child's college tuition. Starting from the birth, you deposit $500 into...
You are saving for your child's college tuition. Starting from the birth, you deposit $500 into an account at the beginning of each month. The account generates 0.5% per month. By the time your child is 18 years old, how much money would you have in the account (assuming there are 18*12=216 payments, i.e there is no payment on the day your child turns 18)?
Saving for College: A Mini Case Your life is changing rapidly. You are still in your...
Saving for College: A Mini Case Your life is changing rapidly. You are still in your first semester of the MBA program at Cal Poly, and you have met some very nice people. But there are big changes on the horizon-your significant other is pregnant and the baby is due around the first week of July, 2019! Of course your little pride-and-joy is going to be cute AND smart. After much consultation, your significant other and you have decided that...
You want to start saving for your daughter's college education now. She will enter college at...
You want to start saving for your daughter's college education now. She will enter college at age 18 and will pay fees of $4,000 at the end of each of the four years. You will start your savings by making a deposit in one year and at the end of every year until she begins college. If annual deposits of $2,458.79 will allow you to reach your goal, how old is your daughter now? Assume you can earn 6% annual...
1. You are current saving for your son's college expenses (tuition, room/board). She is 10 years...
1. You are current saving for your son's college expenses (tuition, room/board). She is 10 years old and will begin college in 8 years. Set aside for her education you have a brokerage account with $10,000 fully invested in an equity index fund that is expected to earn 10% per year. Your plan is to send your son to a public school where the expenses are currently (at T = 0) $18,000 per year, however you expect the expenses to...
You are currently saving for your spouse's college expenses (tuition, room/board). She is 20 years old...
You are currently saving for your spouse's college expenses (tuition, room/board). She is 20 years old and will begin college in 8 years. Set aside for his education you have a brokerage account with $10,000 fully invested in an equity index fund that is expected to earn 10% per year. Your plan is to send your wife to a state school where the expenses are currently (at T = 0) $18,000 per year, however, you expect the expenses to grow...
you start saving monthly for your child in order to accumulate 10,000 dollars once the child...
you start saving monthly for your child in order to accumulate 10,000 dollars once the child is 18 (imagine, the child was just born). How much you must put aside every month, if yearly interest rate is 3%?
You want to save for your child’s college. Your child will start to college in 18...
You want to save for your child’s college. Your child will start to college in 18 years and you want to have $152698 at that time. You find a saving plan that will pay 6.0% compounded weekly (52 times per year). How much will you have to deposit weekly to accomplish this?
2. As you may know a college education is expensive. Some parents start saving early for...
2. As you may know a college education is expensive. Some parents start saving early for their child's education. Consider this scenario. Your child will need $22,000 when they are 18, $25,000 at age 19, $28,000 at 20, and $31,000 at 21. Assume you can invest at 6% compounded annually. You have two options: a) Deposit a lump sum at year 1 and let it grow until enough accrues to cover the education expense. How much would need to be...
14. Your target is to have $200,000 for your daughter’s college tuition. If you begin saving...
14. Your target is to have $200,000 for your daughter’s college tuition. If you begin saving today equal amounts per year for 15 years at 8%, how much will you need to save per year?
5. You’ve just graduated college, and you are contemplating your lifetime budget. You think your general pre-retirement living expenses will average around $60,000 a year. For the next 8 years, you will rent an apartment for $16,000 a year (assume end-of-
You’ve just graduated college, and you are contemplating your lifetime budget. You think your general pre-retirement living expenses will average around $60,000 a year. For the next 8 years, you will rent an apartment for $16,000 a year (assume end-of-period payments). At the end of Year 8, you will want to buy a house that should cost around $250,000. In addition, you will need to buy a new car roughly once every 10 years, starting now and continuing for the...
Saving for College: A Mini Case Your life is changing rapidly. You are still in your first semester of the MBA program at Cal Poly, and you have met some very nice people. But there are big changes on the horizon-your significant other is pregnant and the baby is due around the first week of July, 2019! Of course your little pride-and-joy is going to be cute AND smart. After much consultation, your significant other and you have decided that...
2. As you may know a college education is expensive. Some parents start saving early for their child's education. Consider this scenario. Your child will need $22,000 when they are 18, $25,000 at age 19, $28,000 at 20, and $31,000 at 21. Assume you can invest at 6% compounded annually. You have two options: a) Deposit a lump sum at year 1 and let it grow until enough accrues to cover the education expense. How much would need to be...
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