Assume the total cost of a college education will be $325,000 when your child enters college In 18 years. You presently have $85,000 to Invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Annual rate 7.74 %

Assume the total cost of a college education will be $325,000 when your child enters college In 18 years. You presently have $85,000 to Invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Annual rate 7.74 %

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

Problem 1PS

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Suppose an individual at age 25 has an annual income of $50,000 and that this income is expected to grow at an annual rate of 2% a year over the course of her career. Assuming that she is expected to retire at the 60, what is the discounted value of her lifetime earnings? Use a discount rate of 3% when making your calculations.
3.) Mark decides to invest, if $300 is earned in three months on her investment of $12000 what is the anual rate of interest?
Assuming an annual return of 12 percent with a Coverdell Education Savings Account, how much would $1600.00 annual contributions be worth when the child is 18 and ready to enter college? When the child is 18 and ready to enter college, the account will be worth $? Round to the nearest cent! Please show a step by step process! PV=PMT*FVIFAV_(i_(2)n)
a. Someone in the 36 percent tax bracket can earn 8 percent annually on her investments in a tax-exempt IRA account. What will be the value of a one-time $13,000 investment in 5 years? 10 years? 20 years? You may use Appendix C to answer the questions. Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ 28,066 in 20 years: $ 60,592 b. Suppose the preceding 8 percent return is taxable rather than tax-deferred and the taxes are paid annually. What will be the after-tax value of her $13,000 investment after 5, 10, and 20 years? Do not round intermediate calculations. Round your answers to the nearest dollar. in 5 years: $ in 10 years: $ in 20 years: $ 19,101
Sue plans to save $4765, $0, and $5419 at the end of Years 1 to 3, respectively. What will her investment account be worth at the end of the Year 3 if she earns an annual rate of 5.98 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Note: It is highly recommended to use Excel (or Google Sheets) or a financial calculator to solve this problem.
Helen Quick made an investment of $20,542.75. From this investment, she will receive $2,400 annually for the next 15 years starting one year from now. Click here to view the factor table What rate of interest will Helen's investment be earning for her? (Hint: Use Table 4.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, e.g. 25%.) Rate of interest %
Subject: acounting
You decide to create a savings account for your children's college education, putting $140 permonth into an account paying 6.1% compounded monthly. What will be the value of theaccount in eighteen years? (Please help by using calculator)
You expect to receive $29,000 at graduation in two years. You plan on investing it at 10 percent until you have $164,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Your parents are giving you $270 a month for 4 years while you are in college. At an annual interest rate of 7.32 percent, what are these payments worth to you when you first start college? $10,645.37 $11,004.00 $11,205.65 $15,004.18 $10,832.13
Suppose that you take out an unsubsidized Stafford loan on September 1 before your junior year for $45004500 and plan to begin paying it back on December 1 after graduation and grace period 27 months later. The interest rate is 6.8%. How much of what you will owe will be interest?$Round your answer to the nearest cent.
To help with a down payment on a home, Elsa is going to invest. Assuming an interest rate of 1.73% compounded annually, how much would she have to invest to have $36,800 after 7 years? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. $0 S oo E D

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