Engineering graduates earn $750,000 more than the average Liberal Arts BA holder in a career. Assume the $750,000 is a lump-sum equivalent at the end of a 35-year career. How much extra does the engineering grad earn per year if the interest rate is 5% per year?

Suppose that, at age 30, you might wish to leave your job and pursue a master’s degree. If you choose to remain at your job, your employer would pay you $74k per year until retirement, at age 55. If you go back to the university, you would have to sacrifice 2 years of income, but once you graduate, you would receive $117k per year until you retire at age 55. The master’s program you are interested in costs $22k per year.     Note: The term “k” is used to represent thousands (× $1,000).       Required: At an opportunity cost of 8%, determine the percentage difference between your most and least profitable alternatives, with the least profitable option as the basis for your calculation.Answer% Intermediate calculations must be rounded to 3 decimal places (at least). Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).

Assume that you will have a 10-year, $20,000 loan to repay when you graduate from college next month. The loan, plus 10 percent annual interest on the unpaid balance, is to be repaid in 10 annual installments of $3,255 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $3,255). Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.) Interest Period Date of Graduation Year 1 Year 2 Year 3 Annual Payment Annual Interest Expense @10% a. Actual net-of-tax interest cost b. Effective interest rate Reduction in Unpaid Balance Unpaid Balance One of the advantages of borrowing is that interest is deductible for income tax purposes. a.…

Stafford loans are the most popular form of student loan in the United States. The current interest rate on a Stafford loan is 4.34​% per year. If you borrow ​$29,000 to help pay for your college education at the beginning of your freshman​ year, how much will you have to pay at the end of your​ freshman, sophomore,​ junior, and senior years for this​ loan? This is a total of four years over which the original loan will be repaid. The annual loan payment will be ______

Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,440 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,110 plus an additional investment at the end of the second year of $5,550. What is the NPV of this opportunity if the interest rate is 1.5% per year? What is the NPV of this opportunity if the interest rate is 1.5% per year? The NPV of this opportunity is $_______ (Round to the nearest cent)

You decide to invest in an instrument that pays 5% annual capitalizable interest each semester. If you want to get an amount of $1,000,000 at the end of 20 years, giving contributions at the end of each month, how much does each monthly contribution have to be to reach the goal?

Obuor a level 100 student at the university plans to take $5000 for each academic year and this amount will attract an interest of 15% annually compounded quarterly . How much will he owe the loan company after his four year study if he plans to take the loan at the start of each academic year ?

Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 14 years before new obligations make it impossible to continue. How much money has accrued in the account at the end of the 14 years? (Round your answer to the nearest cent.) $  If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 29 years after the plan began? (Round your answer to the nearest cent.) $

You have 30 years left until retirement and want to retire with $2.6 million. Your salary is paid annually, and you will receive $76,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn a return of 9 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Perentage of Salary:______________

A.) You want to have $350,000 saved up by the time you retire in 30 years, How much would you need to deposit each month into a savig account earning 6.5% annual interest to achieve this goal? Round to the nearest cent, if necessary.  Excel formula: Your answer: