QUESTION ONE You estimate that you will need about K80,000 to send your child to college in eight years. You have about K35,000 now. If you can earn 20 percent per year, will you make it? At what rate will you just reach your goal? (
QUESTION ONE
You estimate that you will need about K80,000 to send your child to college in eight years. You
have about K35,000 now. If you can earn 20 percent per year, will you make it? At what rate will
you just reach your goal? (
Would you be willing to pay K1,163 today in exchange for K10,000 in 30 years? What would be
the key considerations in answering yes or no? Would your answer depend on who is making the
promise to repay?
You have just made your first K2,000 contribution to your individual retirement account.
Assuming you earn a 12 percent
your account be worth when you retire in 45 years? What if you wait 10 years before contributing?
(Does this suggest an investment strategy?)
If you were an athlete negotiating a contract, would you want a big signing bonus payable
immediately and smaller payments in the future, or vice-versa? How about looking at it from the
team’s perspective?
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