In two years Boris plans to enroll at Cleese University, a prestigious university in the Pacific Northwest of the USA. If the current tuition is $23,500 per year and is expected to increase at a rate of 6% per year, how much will Boris pay in tuition his first year of school? (His first tuition payment is exactly two years from today.) In his fourth year? (His last tuition payment is exactly 5 years from today) (Rounded to the

In two years Boris plans to enroll at Cleese University, a prestigious university in the Pacific Northwest of the USA. If the current tuition is $23,500 per year and is expected to increase at a rate of 6% per year, how much will Boris pay in tuition his first year of school? (His first tuition payment is exactly two years from today.) In his fourth year? (His last tuition payment is exactly 5 years from today) (Rounded to the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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B) Pinky's father is planning to admit her in a reputed university 5 years from now. Pinky is currently 15 years old; she will enroll in a university 5 years later and should graduate within 4 years. They are anticipating after 5 years the annual cost (for everything tuition fee, books) will be BDT 1, 40,060 but this cost is expected to increase by 4% annually. Universities accept the total payment in advance at the beginning of the year. Pinky currently has a saving account with BDT 100,000 in it which pays 9% interest annually. Her father is planning to make five equal annual deposit to her account; The first deposit will be made today. How large each of the annual deposit should be?
Oliver currently has $2,200 in a savings account paying 4.0% interest. He has a goal of taking a year-long around the world vacation. He has decided to deposit $150 from each paycheck (24 a year) for the next two years. Then he will leave on his vacation and withdraw an amount at the beginning of each month while he is on his cruise. How much will he be able to withdraw each month of his voyage?
Gail decided that in six years she would leave her job in publishing and retire to Arizona. What amount should Gail invest today, so that she will be able to withdraw $50,000 at the end of each year for 30 years after she retires? Assume she can invest money at 5%, compounded annually.
Sean plans to invest $10,000 in a savings account that pays 1.5% compounded quarterly. His friend suggests that he invest in an account paying the same interest rate but that pays interest compounded monthly. How much more interest will he earn at the end of 10 years if he follows his friend's advice?
In December 2018, Eric puts $1600 into a bank account. He then deposits an additional $1000 each year thereafter. The account earns 4% interest, compounded annually. When Eric has a total of at least $50,000 in his account at the beginning of a year he will buy a house. In what year will this happen?
George Green wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term investment or 3.5% for a six-month term. a)How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to nearest one. b)How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5% each time? This means George took the interest from the first investment transaction and included it in the principal for the second transaction. Round to nearest 100th. c)What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage round to nearest 100th .
Mike is planning to take a Caribbean vacation in two years. In order to save money for the trip, he invests his $1200 tax refund. a. Bank 1 offers simple interest of 8 %. At the end of the two years of investment, how much will Mike have in his savings account if he chooses Bank 1? b. Bank 2 offers 3.5% compounded quarterly. At the end of the two years of investment, how much will Mike have in his savings account if he chooses Bank 2? c. If the trip costs $1,350. Is Mike going to be able to accomplish his goal? Which bank should he choose? Explain why.
Hashim wants to invest an amount of OMR. 9800 every year to buy a house at the end of 10 years. For this purpose, he wants to invest some money in a saving bank but does not know the exact amount of money he will get after 10 years a) What amount will he receive assuming an interest rate of 4.005%? b) What amount will he receive assuming an interest rate of 5.50%? c) Suggest the option which will be enough to meet his house which is estimated to be OMR. 100000?
When Joe and Sarah graduate from college, each expects to work a total of 45 years. Joe begins saving for retirement immediately. He plans to deposit $600 at the end of each quarter into an account paying 8.1% interest, compounded quarterly, for 10 years. He will then leave his balance in the account, earning the same interest rate, but make no further deposits for 35 years. Sarah plans to save nothing during the first 10 years and then begin depositing $600 at the end of each quarter in an account paying 8.1% interest, compounded quarterly for 35 years. Complete parts (a) through (e) below. a. Without doing any calculations, predict which one will have the most in his or her retirement account after 45 years. Then test your prediction by answering the following questions. Choose the correct answer below. O A. Joe will have more in his account after 45 years. Sarah contributed more money overall, but Joe was earning 8.1% interest per quarter for 35 years. Sarah will have more in her…
Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an ordinary annuity that earns 4.2% interest, compounded quarterly. Deposits will be made at the end of each quarter. How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $71,000 after 14 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.