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)?

Q: You borrow $12,000 for educational expenses (ie, a student loan). Six months after graduation you…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: A property will provide $24,400 at the end of each year forever. If its value is $245,000, what must…

A: Annual Cash Flow = $24,400Perpetuity Value (Property Value) = $245,000

Q: You invest $2500 in an account to save for college. Account 1 pays 6% annual interest compounded…

A: The concept of time value of money will be used in this case. We will first of all have to find the…

Q: if they have $57,000 combined student loans with an APR of 5.5%, what size monthly payment would pay…

A: MONTHLY PAYMENT FORMULA: PMT=P×rm1-1+rm-m×n where, P = principal of loan r = rate of interest m =…

Q: how much money would you need to put aside at the beginningmof each month for the next 30 years in…

A: Calculate the monthly payment as follows:MS-Excel --> Formulas --> Financials --> PMT

Q: How much money must be deposited into an account paying interest at 5% compounded annually in order…

A: Given, Rate = 5% Amount =$2000

Q: Your company will generate $82,000 in annual revenue each year for the next six years from a new…

A: Annual revenue (P) = $ 82000 Discount rate (r) = 10.75% Per)iod (n) = 6 Years

Q: What annual interest rate wouldyou need to earn if you wanted a$600 per month contribution togrow to…

A: The objective of the question is to find out the annual interest rate required for a monthly…

Q: are forecasting the amount of plane tickets. Based on your study, it is likely that airplane tickets…

A: The price of tickets increases with time and money required today would be the present value of…

Q: How much must you put away at the end of each year

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Your first job out of college will pay you $81,000 in year 1 (exactly one year from today). You…

A: C1 =  $81,000 in year 1Salary growth rate, g = 7% per yearC2 = C1 x (1 + g)C3 = C2 x (1 + g) = C1 x…

Q: Upstate University charges ​$15,000 a year in graduate tuition. Tuition rates are growing at 3.5​%…

A: Expected graduate tuition in 6 years = Current Charges * (1+growthrate)^no. of years  Where, current…

Q: The ZLC consulting firm just signed an agreement to provide services to another firm.  In doing so,…

A: Here, To Find: Total Present Value of agreement =?

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: Your company will generate $74,000 in annual revenue each year for the next seven years from a new…

A: Present Value = future value discounted at 7.25%

Q: You have a student loan of 40,000$ that you want to repay in 10 years. Interest rates are at 6% per…

A: Since an amount is paid annually over the loan period, it is a type of annuity. The present value of…

Q: How much more will you have in your RRSP 30 years from now if you start to contribute $1000 per year…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: you are paying into an investment account that pays 8% compounded annually. If you are making…

A: In the given question we require to calculate the future value from the following details: Interest…

Q: If a donation of $100,000 is expected to pay out scholarships of $10,000 every year and the funds…

A: Here, to calculate time period we have to use the compound interest formula .   A = P 1+r100n…

Q: How much money would you need at the present to pay for 4 years of college tuition if the first year…

A: Cost for first year = $40,000 Cost for second year = $40,000 + $5,000 = $45,000 Cost for third year…

Q: A student plans to enroll at the university and plans to continue there until earning a PhD degree…

A: INTRODUCTION: The present value, also known as discounted value, is a financial formula that…

Q: In 3 years you are planning a round-the-world trip which will cost $70,000. What amount would you…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: 3. Need help with finance homework. Assume a discount rate of 6.75%. You are planning to receive…

A: Discount rate (r) = 0.0675 Period (n) = 6 Years First payment (C) = $12,000 Growth rate (g) = 0.022…

Q: At 2% interest per year, what was the initial endowment amount (PW) that would permit $1 million…

A: Perpetuity refers to the instrument that pays a fixed annual interest payment to the holder…

Q: Future value. Upstate University charges $21,000 a year in graduate tuition. Tuition rates are…

A: Current tuition charges (P) = $21,000 Annual growth rate (g) = 2.5% Period (n) = 4 Years

Q: A state lotto has a prize that pays $1,000 each week for 30 years. Find the total value of the…

A: Annuity is a series of periodic equal payments at equal interval. With periodic interest rate (r),…

Q: A state lotto has a prize that pays $1,700 each week for 15 years. Find the total value of the…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: The average tuition fee per semester in the college level is 50,000 pesos. If yearly, tuition fee…

A: Current tuition fees (PV) = 50,000 pesos Growth rate (g) = 4% Period (n) = 15 years

Q: How much money would you need to set aside each year for 14 years, at 10% interest, to have…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: 35. Upland Family Practice Center plans to invest $60,000 in a money market account at the beginning…

A: 3This question is based on annuity due concept where the cashflow stream starts at beginning of each…

Q: A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be…

A: Present value is an estimate of the present value of future cash flows received, discounted at an…

Q: How much will you pay for a $10,000 automobile in 20 years if the infla-tion rate averages 3 percent…

A: Information Provided: Present amount = $10,000 Term = 20 years Inflation rate = 3%

Q: You donate $400,000 to provide annual scholarships in perpetuity. The money is deposited into an…

A: in this we have to find out effective annual interest rate and from that we will get annual…

Q: An annual maintenance cost of a machine is 500 this year. It is expected to increase 50 pesos per…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: The average age of engineering students at graduation is a little over 23 years. This means that the…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Present-value comparison) You are offered ​$100,000 today or ​$340,000 in 15 years. Assuming that…

A: We need to calculate the present value of both the alternative in order to understand which…

Q: You need $150,000 at the end of the 20th year. You are thinking about two ways of saving the money.…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: You have decided to set aside a fixed amount every quarter in order to have $12,000 available for a…

A: The amount to be deposited every quarter can be calculated with the help of future value of annuity…

Q: The cost of a college education is currently $15,000 per year. The expected annual inflation rate…

A: To cover a $15,000 college education in 5 years with 3% annual inflation, you need to deposit…

Q: f a person spends $6 a week on coffee (assume $300 a year), what would be the future value of that…

A: Future value is the amount deposited and amount of interest accumulated over the period.In the given…

Q: how much money will have accumulated at the end of the 10-year period

A: Future Value of Annuity: It is the future worth of a series of cashflows/payments compounded over a…

Q: he LA times recently carried a story that tuition could be increased in the University of California…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: monthly payments over 10 years at 5% APR interest compounded monthly, how much are your monthly…

A: Information Provided: Loan amount = $91,000 Term = 10 years Interest rate = 5% compounded monthly

Q: You figure that the total cost of university will be $ 130,000 per year 18 years from today. If your…

A: Step 1: Given that, Total cash flow (C) = $130,000 Interest rate (r) = 5% Step 2: PV = C / (1+r)18 +…