Question 48 pEsther calculates that she will need about $9,600 forthe first year of tuition at college. Her grandparents willcontribute $3,000 to her tuition expenses and Estherreceived a $1,500 scholarship. She plans to save to payfor the rest. If Esther has 2 years to save, what is theminimum amount that she should save each month?O $125.42O $161.25O $98.72O $212.50Question 5Which of the following is a true statement about an8 p

Step 1:Here given that :Total tuition cost = $9600Grandparents' contribution = $3000Scholarship =…

Answered: Question 4 8 p Esther calculates that…

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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out tion Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500 per year in today's dollars. Alexis was born today and will go to school starting at age 18. She will go to school for 4 years. Johnny can earn 11% on his investments and tuition inflation is 7%. How much must Johnny save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter's first year of college? O a. $2,694.56. b. $2,789.04. * $2,861.65. O d. $3,176.43. OC
Raymond wants to save the college tuition fees his child will need in ten years by starting with a deposit of $7,500 today and depositing another $200 at the beginning of each month. How much will Raymond have in ten years if he gets a rate of return of 4% per annum? a. $37,201 b. $39,057 c. $40,537 d. $40,441
Ef 12.
Elizabeth and William want to begin saving for their child's college education. They estimate that they will need $119000 in twenty years. If they can earn 5% per annum, how much must be deposited at the end of each of the next twenty years to fund the education? O $9549 $9282 O $3599 O $3897
A new mother would like to start a college fund for her newborn daughter. She makes quarterly deposits of $400 into a college fund that earns 6% compounded quarterly for the next 18 years. How much will her daughter have available in her college fund when she turns 18? $ Round to the nearest dollar What is total amount the mother deposited into the fund over the 18 years? $ Round to the nearest dollar How much interest was earned over the 18 years? $ Use the WHOLE DOLLAR AMOUNTS you entered in as your answers above. 4 Round to the nearest dollar
Mr. and Mrs. Pence would like to set up a college fund for their grandson. They want him to be able to withdraw $2,250 each month for the two years he will be in college. 8. MAB 11 Their grandson is currently celebrating his second birthday. His first college withdrawal will be on his 19th birthday. The college fund will earn j12=2.4%. 14 How much must they deposit today into the college fund? Your Answer: Answer
Alice needs P 4,000 per year for four years to go to college. Her father invested P 5,000 in 7% account for her education when she was born. If she withdraw at the end of her 17th, 18th, 19th and 20th birthday, how much will be left in the account at the end of her 22nd birthday? P 1819 P 1700 P 1900 P 1619
The Benefit of a Higher APY Isabel Lopez from Lewiston, Idaho, who is 19 years old, recently received an inheritance of $49,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 4.0 percent APY. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 6.0 percent? Round your answer to the nearest dollar. (Hint: Use Appendix A-1 or visit the Garman/Forgue companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places.
What does Shelley need to save monthly to make sure she is on track to reach her retirement goal of having $440,000 saved by the time she reaches age 65? She is 48 years old, has been contributing $400 per month and has $180, 000 in her RRSP. Assume she will make an annual return of seven percent. Select one: a. $1275 b. $336 c. $681 d. $1133
Your sister just deposited $10,000 into an investment account. She believes that she will earn an annual return of 9.7 percent for the next 6 years. You believe that you will only be able to earn an annual return of 9 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 6 years? Multiple Choice $391.56 $1,326.80 $466.46 $365.46 $417.66
Help me get the correct answeer plewsssssssss
e She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. c. She If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Problem 5 EVALUATING LUMP SUMS AND ANNUITIES. Crissie just won the lottery, and she must choose between three award options. She can elect to receive a lump sum today of $61 million, to receive 10 end-of-year payments of $9.5 million, or to receive 30 end-of-year payments of $5.5 million. a. If she thinks she can earn 7% annually, which should she choose? b. If she expects to earn 8% annually, which is the best choice? c. If she expects to earn 9% annually, which option would you recommend? d. Explain how interest rates influence the optimal choice. Problem 6 PV OF A CASH FLOW STREAM. A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He has been offered three possible 4-year contracts. Payments…

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