income used to pay college tuition and expenses. a. If the interest rate is 11 percent, how much money will your friends need to put into their savings account today to have $155,000 in 18 years? b. What if the interest rate were 8 percent? c. The chance that the price of a college education will be the same 18 years from now as it is today seems remote. Assuming that the price will rise 4 percent per year, and that today's interest rate is 12 percent, what will your friend's investment need to be? d. Return to part (a), the case

income used to pay college tuition and expenses. a. If the interest rate is 11 percent, how much money will your friends need to put into their savings account today to have $155,000 in 18 years? b. What if the interest rate were 8 percent? c. The chance that the price of a college education will be the same 18 years from now as it is today seems remote. Assuming that the price will rise 4 percent per year, and that today's interest rate is 12 percent, what will your friend's investment need to be? d. Return to part (a), the case

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 8E

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