ork for a few years, and then start your grad school when you turn 26. To save up ough for your grad school degree you will set aside $12,300 once a year, a total of six entical amounts, deposited into the same bank account. You will set aside the first such mount today. hen you turn 26 and start your grad school degree, you will right away hdraw $28,000 to pay for the first year of your grad school tuition. You will ther ntinue withdrawing the same amount of money from the same bank account (which ep in mind! keeps earning you interest), once each year. To cover the tuition penses you will need to make four such money withdrawals. %. (Do not sed on the above, the annual interest rate in this bank account is. and intermediate calculations and enter your answer as a percent rounded to 2 cimal places, e.g., 12.34)
ork for a few years, and then start your grad school when you turn 26. To save up ough for your grad school degree you will set aside $12,300 once a year, a total of six entical amounts, deposited into the same bank account. You will set aside the first such mount today. hen you turn 26 and start your grad school degree, you will right away hdraw $28,000 to pay for the first year of your grad school tuition. You will ther ntinue withdrawing the same amount of money from the same bank account (which ep in mind! keeps earning you interest), once each year. To cover the tuition penses you will need to make four such money withdrawals. %. (Do not sed on the above, the annual interest rate in this bank account is. and intermediate calculations and enter your answer as a percent rounded to 2 cimal places, e.g., 12.34)
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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Question
Transcribed Image Text:You've just turned 20 years old today. You would like to finish your Cal Poly degree, then
work for a few years, and then start your grad school when you turn 26. To save up
enough for your grad school degree you will set aside $12,300 once a year, a total of six
identical amounts, deposited into the same bank account. You will set aside the first such
amount today.
When you turn 26 and start your grad school degree, you will right away
withdraw $28,000 to pay for the first year of your grad school tuition. You will then
continue withdrawing the same amount of money from the same bank account (which -
keep in mind! keeps earning you interest), once each year. To cover the tuition
expenses you will need to make four such money withdrawals.
%. (Do not
Based on the above, the annual interest rate in this bank account is
round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 12.34)
Return
9.40%
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