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)?
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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)?
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- 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 pay for university, you have just taken out a $1000 government loan that makes you pay $126 per year for 25 years. Calculate the yield to maturity if you start making payments exactly one year from now. If you start making these payments after your graduation, i.e. exactly three years from now,Assume the total cost of a college education will be $360,000 when your child enters college in 15 years. You presently have $58,000 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 %
- 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?You estimate that you will need $10,000 for education in 8 years. How much must you put away at the end of each year at 6 percent interest to have the college money ready? Show Time value of money imputsYou figure that the total cost of college will be $101,000 per year 18 years from today. If your discount rate is 10% compounded annually, what is the present value today of four years of college costs starting 18 years from today?
- Assume the total cost of a university education will be $90,000 when your child enters university in 6 years. You presently have $55,000 to invest. What annual rate of interest (APR) must you earn, if the interest is compounded monthly? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to two decimal places. NumberAssume 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 %Tuition at the Home State University is currently $10,000 per year, increasing on the average of 6% per year. What is the lump sum needed at the beginning of the freshman year of college to fund an 8-year old child's college education for 4 years starting at age 18, if the investment return is expected to be 4%? $65,778 $67,706 O $78,342 $69.502
- Assume the total cost of a college education will be $350,000 when your child enters college in 15 years. You presently have $67,000 to invest.What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?You have $400,000 to donate to your college. The college's discount rate is 6%. You donate the money today, but you ask the college to delay the scholarship payment so that the first scholarship payment is made 10 years from today. How large will the annual payment be? The annual scholarship payment will be $. (Round to the nearest cent.)Assume the total cost of a college education will be $200,000 when your child enters college in 15 years. You presently have $40,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education