Rena and Hunter Alesio have two children, ages 5 and 7. The Alesios want to start...
Rena and Hunter Alesio have two children, ages 5 and 7. The Alesios want to start saving for their children’s education. Each child will spend 6 years at college and will begin at age 18. College currently costs $20,000 per year and is expected to increase at 6% per year. Assuming the Alesios can earn an annual compound return of 12% and inflation is 4%, how much must the Alesios deposit at the end of each year to pay for their children’s educational requirements until the younger child is out of school? Assume that education expenses are withdrawn at the beginning of each year and that the last deposit will be made at the beginning of the last year of the younger child.
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Rena and Hunter Alesio have two children, ages 5 and 7. The
Alesios want to start...
You are saving for the college education of your two children. They are two years apart...
You are saving for the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $40,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7 percent. Your deposits begin one year from today. You will make your last deposit when your oldest child...
Example 7: Amita has 4 children ages 1, 3, 5, and 7. The current cost of college is $25,000. The ...
Example 7: Amita has 4 children ages 1, 3, 5, and 7. The current cost of college is $25,000. The children will begin college at age 18 and be in college for 4 years. Education inflation is expected to be 6% and Amita's portfolio rate of return is 8% How much does Amita have to annually at year end through the education of the youngest child to pay all college costs?U traditional method. save se the
Example 7: Amita has...
a. Dr. Fatima has been working on an advanced technology in laser eye surgery. The technology...
a. Dr. Fatima has been working on an advanced technology in laser eye surgery. The technology is expected to be available to the medical industry six years from today and will generate annual income of $600,000 six years from now and it will grow at 4 percent perpetually starting that year. What is the present value of the technology if interest rate is 12 percent? $600,000.00 $7,500,000.00 $6,000,000.00 $5,000,000.00 $4,255,701.42 b. You are saving for the college education of your...
Tony has two children, Angelo age 8 and jessica age 5. Tony wants to provide for...
Tony has two children, Angelo age 8 and jessica age 5. Tony wants to provide for their education funding Currently, tuition is $12.000 per year and tuition inflation is 6. Tony expects to earn 8% on his investments and he expects the children to start college at age 18 and go to college for 4 years. Tony wants his last savings payment to be made when the oldest child starts college. How much must Tony save at the end of...
1) You have two children who will be going to college. The first child will begin...
1) You have two children who will be going to college. The first child will begin 17 years from today, and tuition will be $20,000, $21,000, $22,000 and $23,000 at t=17, 18, 19, and 20. The second will begin college 19 years from today, and tuition will be $22,000, $23,000, $24,000 and $25,000 at t=19, 20, 21, and 22. a) To fund your children’s tuition, you would like to make an equal annual deposit over the next 20 years (first...
(b) (5 pts) UIC Inc. has an issue of preferred stock outstanding that pays a $5...
(b) (5 pts) UIC Inc. has an issue of preferred stock outstanding that pays a $5 dividend every year, in perpetuity. If the market requires a return of 10% on assets this risk level, how much should the preferred stock be selling for? (c)(8 pts) A common stock just paid a dividend of $2. The dividend is expected to grow at 6% for 5 years, then it will grow at 2% in perpetuity. What is the stock worth? The discount...
Robert Johnson is 25 years old. He and his wife Jane have two children, Emmitt and...
Robert Johnson is 25 years old. He and his wife Jane have two children, Emmitt and Patricia, ages 2 and 4 respectively. Robert wants to retire in 40 years and build boats. He would like a nice retirement home with some land on a peaceful lake in the mountains of Georgia. Robert believes that to purchase a home and lot in 40 years would cost $300,000 in today’s prices. In forty years Robert also believes he and Patricia can live...
Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $200000 in eigh...
Lucy and Fred want to begin saving for
their baby's college education. They estimate that they will need
$200000 in eighteen years. If they are able to earn 6% per annum,
how much must be deposited at the beginning of each of the next
eighteen years to fund the education?
*Need the process, thanks*
Your answer is correct. Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $200000 in eighteen years....
North West Sr. is creating a college fund for his two kids, South and J-C, ages...
North West Sr. is creating a college fund for his two kids, South and J-C, ages 5 and 3, respectively. To take over the fashion Empire, they will start college at 18 years old. Today, Harford University of Fashion costs $25,000, per student, and this cost is expected to increa se by 5% each year. West Sr. plans to make 19 annual contributions to the college fund, and he plans to increase the contributions by 8% each year to combat...
* THEY CAN GO TO COLLEGE AT 18 YRS OLD. 4. An engineering couple is planning...
* THEY CAN GO TO COLLEGE AT 18 YRS OLD.
4. An engineering couple is planning to finance the projected college expenses of their two children. The children are currently aged 1 and 4, respectively. They estimate total college expenses foreach child to be $60000 per year and they assume college wil be four years for each child. At the birth of each child the Grandparents invested $5000 in a fund growing at 8% per year with a ten year...
Example 7: Amita has 4 children ages 1, 3, 5, and 7. The current cost of college is $25,000. The children will begin college at age 18 and be in college for 4 years. Education inflation is expected to be 6% and Amita's portfolio rate of return is 8% How much does Amita have to annually at year end through the education of the youngest child to pay all college costs?U traditional method. save se the
Example 7: Amita has...
Tony has two children, Angelo age 8 and jessica age 5. Tony wants to provide for their education funding Currently, tuition is $12.000 per year and tuition inflation is 6. Tony expects to earn 8% on his investments and he expects the children to start college at age 18 and go to college for 4 years. Tony wants his last savings payment to be made when the oldest child starts college. How much must Tony save at the end of...
(b) (5 pts) UIC Inc. has an issue of preferred stock outstanding that pays a $5 dividend every year, in perpetuity. If the market requires a return of 10% on assets this risk level, how much should the preferred stock be selling for? (c)(8 pts) A common stock just paid a dividend of $2. The dividend is expected to grow at 6% for 5 years, then it will grow at 2% in perpetuity. What is the stock worth? The discount...
Lucy and Fred want to begin saving for
their baby's college education. They estimate that they will need
$200000 in eighteen years. If they are able to earn 6% per annum,
how much must be deposited at the beginning of each of the next
eighteen years to fund the education?
*Need the process, thanks*
Your answer is correct. Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $200000 in eighteen years....
North West Sr. is creating a college fund for his two kids, South and J-C, ages 5 and 3, respectively. To take over the fashion Empire, they will start college at 18 years old. Today, Harford University of Fashion costs $25,000, per student, and this cost is expected to increa se by 5% each year. West Sr. plans to make 19 annual contributions to the college fund, and he plans to increase the contributions by 8% each year to combat...
* THEY CAN GO TO COLLEGE AT 18 YRS OLD.
4. An engineering couple is planning to finance the projected college expenses of their two children. The children are currently aged 1 and 4, respectively. They estimate total college expenses foreach child to be $60000 per year and they assume college wil be four years for each child. At the birth of each child the Grandparents invested $5000 in a fund growing at 8% per year with a ten year...
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