You expect to enroll in a four-year medical school six years from today, and you are planning accordingly. Currenttuition for medical school is $61,000 per year, and it's is expected to grow at a rate of 5% per year in the future. Howmuch do you need to deposit in an investment account today, which earns 9% per year, so that you can have enoughmoney to pay for medical school? You can assume tuition payments are due at the beginning of each year so that youwill have to make a tuition payment 6 years from today, 7 years from today, 8 years from today and 9 years fromtoday (for a total of four tuition payments).The amount of money you need to deposit in an account today is closest to:

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You expect to enroll in a four-year medical school six years from today, and you are planning accordingly. Curre tuition for medical school is $61,000 per year, and it's is expected to grow at a rate of 5% per year in the future. much do you need to deposit in an investment account today, which earns 9% per year, so that you can have en money to pay for medical school? You can assume tuition payments are due at the beginning of each year so th will have to make a tuition payment 6 years from today, 7 years from today, 8 years from today and 9 years from today (for a total of four tuition payments). The amount of money you need to deposit in an account today is closest to:

You expect to enroll in a four-year medical school six years from today, and you are planning accordingly. Curre tuition for medical school is $61,000 per year, and it's is expected to grow at a rate of 5% per year in the future. much do you need to deposit in an investment account today, which earns 9% per year, so that you can have en money to pay for medical school? You can assume tuition payments are due at the beginning of each year so th will have to make a tuition payment 6 years from today, 7 years from today, 8 years from today and 9 years from today (for a total of four tuition payments). The amount of money you need to deposit in an account today is closest to:

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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Similar questions

Your daughter is expected to the university next year. It is estimated that she will need 10,000 each year for the for years university education. You are planning to deposit a lump sum in an account that will yield 10% per anum to cater for her university education. How much should be deposited?
Please show financial calculator inputs for this problem.…Your sister would like your help planning for her new daughter’s college education. She has estimated that the cost of 1 year of college (tuition, room, and board) is currently $60,000 a year. The cost of college is estimated to increase at an annual rate of 5%. She would like you to figure out how much she would need to deposit at the end of each month for the next 18 years to cover her daughter’s four years of tuition assuming her deposits will earn 12% each year (1 % a month) (Note your account will earn interest a 1% a month even if you are not making monthly payments after you stop paying in at the end of the 18th year.
A chiropractic student receives a 10-year PLUS Loan for $50,000 to complete the last 2 years of the program. If the interest rate of the loan is 5.48% and the student begins repaying the loan 2 years after graduation, what will the student's monthly payments be (in dollars)? (Assume the loan has a deferred payment plan. Round your answer to the nearest cent.)
You want to invest $10,000 today to accumulate $16,000 for graduate school. If you can invest at an interest rate of 10% compounded annually, how many years will it take to accumulate the required amount?
The parents of a newborn baby would like to put money away today to cover 100% of the child's expected total 4 - years of college tuition. The first tuition payment is due exactly 18 years from today, and the next three payments are due at the end of years 19, 20 and 21. Suppose that the parents estimate that the cost of tuition will be $86,000 per year for the first three years, but that the fourth year's tuition will be $96,000. Which comes closest to the amount of money that needs to be set aside today if the interest rate is 6% ? A. $ 104, 719 B. $ 136, 639 C. $ 16,857 D. $ 113, 608 E. $ 198, 781
You plan to buy an apartment for $300,000, but you have only $8,000 in cash. The bank will loan you the rest at the annual interest rate of 12%, with the payments spread over 30 years. Find your yearly payments.
William Jack and Sophia Rose are planning on their first child education. If they expect that college will cost RM150,000 per year in 18 years, calculate how much should the couple begin depositing annually at the end of each of the next 18 years to accumulate enough funds to pay one year of tuition 18 years from now. Assume they can earn a 6% annual rate of returm on their investment.
An engineer intends to travel abroad to take a postgraduate course at a maternity hospital. He estimates that he needs $5,000 to establish himself and another $3,000 monthly for two years to complete the course. What value would he need to have today to make his plans viable, considering that he could apply the money at a rate of 6.0% per year?

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