Michael and Ava want to know how much it will cost to put their daughter Lily through college. She will begin ollege in 13 years. Assume college costs $12,000 per year today. Lily will attend college for 4 years. College osts increase 4.0% each year. How much money do Michael and Ava need to have on hand on the day Lily BEGINS college, in order to fund her entire college degree? (Assume the money will earn 6% annual interest while is in her college savings account). Lily will spend the entire amount available during her college years. Each year of college she will withdraw more than the prior year (the amount will increase by the college cost inflation rate). amortize the balance in her account to zero at the end of the 4 college years...base calculations on a growing nnuity withdrawal schedule). (amortize the balance in her account to zero at the end of the 4 college years). $73,292.32 O $69,235.87

Michael and Ava want to know how much it will cost to put their daughter Lily through college. She will begin ollege in 13 years. Assume college costs $12,000 per year today. Lily will attend college for 4 years. College osts increase 4.0% each year. How much money do Michael and Ava need to have on hand on the day Lily BEGINS college, in order to fund her entire college degree? (Assume the money will earn 6% annual interest while is in her college savings account). Lily will spend the entire amount available during her college years. Each year of college she will withdraw more than the prior year (the amount will increase by the college cost inflation rate). amortize the balance in her account to zero at the end of the 4 college years...base calculations on a growing nnuity withdrawal schedule). (amortize the balance in her account to zero at the end of the 4 college years). $73,292.32 O $69,235.87

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 33P

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