FINANCE9

Assume that you are planning for your child's education. You would like to make deposits every 26 weeks (half year) in Years O through 21. with your first deposit to be made today (a total of 43 deposits), so that your child may make withdrawals in each of the Years 18 through 21 for tuition. Tuition is currently $3,000, but is expected to grow at 4% for each of the next 10 years, then at 6% for each of years 11 through 21. If you can earn a stated or nominal annual rate of 8.25%. but interest is compounded weekly (52-week year), then how much must you deposit every 26 weeks? O $301.31 O $271.99 $310.43 O $282.76 $292.40

You are planning for your child's education. You would like to make deposits every 26 weeks (half year) in Years O through 21, with your first deposit to be made today (a total of 43 deposits), so that your child may make withdrawals in each of the Years 18 through 21 for tuition. Tuition is currently $2,900/year, and is expected to grow at 4% for each of the next 10 years, and then at 5% for each of years 11 through 21. You can earn a nominal annual rate of 8.632%, with interest compounded weekly (52-week year) in a college savings account. How much must you deposit every 26 weeks? O $245.56 O $219.25 O $236.79 O $254.33 $228.02

Your daughter will start college one year from today, at which time the first tuition payment of \$58,000$58,000 must be made. Assume that tuition does not increase over time and that your daughter remains in school for four years. How much money do you need today in your savings account, earning 5\%5% per annum, in order to make the tuition payments over the next four years, provided that you have to pay 35\%35% per annum in taxes on any earnings (e.g., interest on the savings)?

Your son Tommy was just born today (Year 0), and you are plannjng for his college education. You would like to make equal depostis every 26 weeks into a college savings account starting in Year 1 and ending in Year 21 (41 deposits), so that Tommy can make annual withdrawala in Year 18, 19, 20, and 21 for tuition. Tuition is currently (Year 0) $2500/year, and it is expected to grow at 4%/year for each of the next 10 years, and then at 5%/year for all years after. You can earn a nominal annual rate or 8.45% with interest compounded weekly in a college savings account. How much must eaxh lf the 41 depostions be to exactly fund the expexted tuition expense?

You plan to establish a college education fund for your child. The current cost of college is $12,000 per year and you expect this to increase by 5% per year. You plan to deposit money into an account earning 10% per year at the end of each of the next 18 years. You will withdraw the amount required for college at the end of years 18-22. You want the deposit to be low initially and grow by the rate of your salary increase, which you estimate to be 3.5%. What will be the first deposit?How much will be in the account after 8 years?

You plan to start grad school in 5 years (at the end of year 5) and will graduate 3 years after you start. Tuition payments of $30,000 per year are due at the beginning of each school year. If you start saving, in equal annual amounts, at the end of this year untilone year before you start school, how much must you save each year to cover the tuition payments? Assume an interest rate of 4.5%

Your daughter will start college one year from today, at which time the first tuition payment of \$58,000$58,000 must be made. Assuming that tuition does not increase over time and that your daughter remains in school for four years, how much money do you need today in your savings account, earning 5\%5% per annum, in order to make the tuition payments over the next four years?

A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $14,000 each, with the first payment occurring today, your child's 12th birthday. Beginning on your child's 18th birthday, the plan will provide $25,000 per year for four years What retum is this investment offering?

Starting next year, you will need $5,000 annually for 4years to complete your education. (One year from today you will withdraw the first $5,000.)Your uncle deposits an amount today in a bank paying 6% annual interest, which will providethe needed $5,000 payments.a. How large must the deposit be?b. How much will be in the account immediately after you make the first withdrawal?

On january 1, 2010, you put 1000.00 in a savings account that pays 6(1)/(4)% interest, and you will do this every year for the next 18 years. Withdraw the balance on December 31 , 2028 , to pay for your child's college education. How much will you withdraw?

A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $16,300 each, with the first payment occurring today, your child’s 12th birthday. Beginning on your child’s 18th birthday, the plan will provide $32,000 per year for four years.    What return is this investment offering?

Question - : Your child is going to college for the next 4 years. You are setting up a college fund that your child withdraws from at the BEGINNING of each 6 month period (2 withdrawls each year). Each withdrawl is $ 3000. The account pays 12% annual interest rate, compounded 2 times a year. How much money should you put in the account now?

Your son Tommy was just born today (Year O), and you are planning for his college education. You would like to make equal deposits every 26 weeks (assume a 52-week year) into a college savings account starting in Year 1 and ending in Year 21 (a total of 41 deposits), so that Tommy can make annual withdrawals in Year 18, 19, 20, and 21 for tuition. Tuition is currently (Year 0) $2,900/year, and it is expected to grow at 4% / year for each of the next 10 years, and then at 5%/year for all years after. You can earn a nominal annual rate of 8.45%, with interest compounded weekly (52-week year) in a college savings account. How much must each of the 41 deposits be to exactly fund the expected tuition expense? O $277.87 O $264.49 O $258.02 O $248.10 O $287.80