Tuition at the Home State University is currendy $10,000 per year, increasing college to fund an 8-year old child's college education for 4 years starting at age 18, i $65,778 $67,706 $78.342 $69.502
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- If it cost $50,000 to attend a public university today, what would it cost to attend that same university 18 years from now assuming that the cost escalated at a rate of 6% per year (annual compounding)?Suppose it costs $18,000 per year (in early 2014 dollars) for tuition, room, board, and living expenses to attend a public university in the Southeastern United States. Solve, a. If inflation averages 8% per year, what is the total cost of a four-year college education starting in 2024 (i.e., 10 years later)? b. Starting in January of 2014, what monthly savings amount must be put aside to pay for this four-year college education? Assume your savings account earns 6% per year, compounded monthly (0.5% per month).To provide for university education fees, money needs to be saved today. What single amount is needed to provide for $6,000 in 6 years, $7,000 in 7 years, $8,000 dollars in 8 years and $9,000 dollars in 9 years at a rate of 4.5% per year?
- How did you get the 6.14 in your solution to this: A master of accountancy degree at Central University costs $12,000 for an additional fifth year of education beyond the bachelor’s degree. Assume that all tuition is paid at the beginning of the year. A student considering this investment must evaluate the present value of cash flows from possessing a graduate degree versus holding only an undergraduate degree. Assume that the average student with an undergraduate degree is expected to earn a salary of $50,00 per year (assumed to be paid at the end of the year for 10 years. Assume that the average student with a master of accountancy degree is expected to earn a salary of $66,000 per year (assumed to be paid at the end of the year) for nine years after graduation. Assume a minimum rate of return of 10%. Round to the nearest dollar. Determine the net present value of cash flows from an undergraduate degree. Use the present value of an annuity table appearing in Exhibit 5 of this…Assume the total cost of a college education will be $380,000 when your child enters college in 16 years. You presently have $62,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rateYou give up a full-time salary of $45,000 a year to go to school for 2 years. The total cost of going to school is $30,000. If you want to be able to recover your investment in 5 years or less, what is the minimum salary you would need to earn upon earning your degree? a $51.000 b. $60.000 C $69,000 d $75.000
- Assume the total cost of a college education will be $325,000 when your child enters college in 18 years. You presently have $85,000 to Invest. What annual rate of interest must you earn on your Investment to cover the cost of your child's college education? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Annual rate 7.74 %Soved Assume the totol cost of a college educotion will be $200,000 when your child enters college in 16 years. You presently have $55,000 to Invest. What annualrote of Interest must you earn on your Investment to cover the cost of your child's college education? (Do not round Intermediate calculations. Enter your answer ac o percent rounded to 2 decimal places, e.g., 32.16.) Annual rate of interestAssume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $57,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate of interest %
- 2. Upon graduating from college this year, you expect to earn $25,000 per year. If you get your BBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5 percent. In today's dollars, how much additional (less) money will you make from getting your BBA (to the nearest dollar) in your first year? C -52,462 $8,333 $8,750 C $9,524 Extra credit: What if the salaries were 25,000 and 35000 for 20 years except that they grow with inflation? How would you decide on the extra year in school?Assume your child will enter college in 10 years. The total cost of a college education is estimated to be $60,000 at that time. You have $10,000 to invest today. What is the rate of interest that you must earn on your investment to cover the cost of your child's education? A. 17.21% B. 13.55% OC. 19.62% D. 25.52%K Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $55 per month into an account with an APR of 7%. ... Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) O A. No, because the amount that will be in the college fund, $ is less than the goal of $65,000. OB. Yes, because the amount that will be in the college fund, $ is more than the goal of $65,000. 3