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2. Calculate the cost of Allison's education Sharon wants to create an education fund for Allison so she can go to 4 years of college at a private university. Tuition is $30,000 per year in today's dollars and is expected to increase at 6% per year until Allison begins her studies in 15 years. Step 1 - get PV of payments the interest rate per period total number of periods in investment payment made each period present value future value Step 2 - get PV of the tuition funds the interest rate per period total number of periods in investment payment made each period future value present value rate nper pmt present value payment made each period pv fv rate nper pmt fv pv Step 3 - amount she will need to deposit for 15 years the interest rate per period rate total number of periods in investment nper future value fv pv pmt 0.06 0 0.023585 $0.00 $277,800.00 $0 do formula here 8.5-6.0 2.358490566 use their $277,799 to make step 3 come out right) do formula here

2. Calculate the cost of Allison's education Sharon wants to create an education fund for Allison so she can go to 4 years of college at a private university. Tuition is $30,000 per year in today's dollars and is expected to increase at 6% per year until Allison begins her studies in 15 years. Step 1 - get PV of payments the interest rate per period total number of periods in investment payment made each period present value future value Step 2 - get PV of the tuition funds the interest rate per period total number of periods in investment payment made each period future value present value rate nper pmt present value payment made each period pv fv rate nper pmt fv pv Step 3 - amount she will need to deposit for 15 years the interest rate per period rate total number of periods in investment nper future value fv pv pmt 0.06 0 0.023585 $0.00 $277,800.00 $0 do formula here 8.5-6.0 2.358490566 use their $277,799 to make step 3 come out right) do formula here

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Please make sure your answer is correct tutor. Out of my questions in Bartleby, 90% are wrong all the time. Please use clean format also. Thank you
2. Calculate the cost of Allison's education Sharon wants to create an education fund for Allison so she can go to 4 years of college at a private university. Tuition is $30,000 per year in today's dollars and is expected to increase at 6% per year until Allison begins her studies in 15 years. Step 1 - get PV of payments the interest rate per period total number of periods in investment payment made each period present value future value Step 2 - get PV of the tuition funds the interest rate per period total number of periods in investment payment made each period future value present value total number of periods in investment future value rate nper pmt present value payment made each period pv fv rate nper pmt fv Step 3 - amount she will need to deposit for 15 years the interest rate per period rate pv nper fv pv pmt 0.06 0 0.023585 $0.00 $277,800.00 $0 do formula here 8.5-6.0 2.358490566 use their $277,799 to make step 3 come out right) do formula here
Transcribed Image Text:2. Calculate the cost of Allison's education Sharon wants to create an education fund for Allison so she can go to 4 years of college at a private university. Tuition is $30,000 per year in today's dollars and is expected to increase at 6% per year until Allison begins her studies in 15 years. Step 1 - get PV of payments the interest rate per period total number of periods in investment payment made each period present value future value Step 2 - get PV of the tuition funds the interest rate per period total number of periods in investment payment made each period future value present value total number of periods in investment future value rate nper pmt present value payment made each period pv fv rate nper pmt fv Step 3 - amount she will need to deposit for 15 years the interest rate per period rate pv nper fv pv pmt 0.06 0 0.023585 $0.00 $277,800.00 $0 do formula here 8.5-6.0 2.358490566 use their $277,799 to make step 3 come out right) do formula here
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