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

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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PLEASE DO ALL PARTS OF THE QUESTION / PROBLEM
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