Time value money annuties

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Question

1. Your younger sister l will start college in five years. Tuition is 17,000 per year four years (cost assumed at the end of each year). In anticipation the parents started investing 2,000 per year 5 years ago and will continue to for the next five years. How much more will your parents have to invest each year for the next 5 years to be able to fund her education? Use 10 percent as the appropriate interest rate throughout the problem (for discounting or compounding). 2. Linda (from problem 1) is now 18 (5 years have passed) and ………Parents have accumulated the necessary funds for her education. Instead of her schooling, her parents are paying 8,000 for her wedding and plan to take year-end vacations costing 5,000 per year for the next 3 years. How much money will her parents have at the end of three years to help with her brother with graduate school. He plans to work towards……. If graduate school costs 14,500 per year, approximately how long will he be able to stay in school based on these funds? (Use 10 percent as the appropriate interest rate throughout this problem). Nov 28 2012 09:06 PM

 

Solution ID:608929 | This paper was updated on 26-Nov-2015

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