Mark is choosing between two colleges. Graduates of college A expect to earn $60,000 upon graduation and receive annual raises of 3%. Graduates of college B expect to earn $50,000 upon graduation, but receive annual raises of 3.5%. Assuming Mark discounts his future income at a rate of 6% and expects to work for 40 years, which college should he choose?

Jan wants to plan for her daughter's education. Her daughter, Rachel was born today and will go to college at age 18 for five years. Tuition is currently $15,000 per year, in today's dollars. Jan anticipates tuition inflation of 6% and believes she can earn an 11% return on her investment. How much must Jan save at the end of each year, if she wants to make her last payment at the beginning of her daughter's first year of college? $4,680.37 $7,334.72 $3,882.03 $2,547.54

You are saving for the university education of your two children. They are two years apart in age; one will begin university 15 years from today and the other will begin 17 years from today. You estimate your children's university expenses to be $45,000 per year per child, payable at the beginning of each school year. The annual interest rate is 7.5 percent. Your deposits begin one year from today. You will make your last deposit when your older child enters university. Assume four years of university. How much money must you deposit in an account each year to fund your children's education? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Annual savings $

Alex wants to provide funding in the event of his death for his daughter Ellie, age 8, to attend four years of college, starting at age 18. The current annual cost of tuition is $20,000. Assume inflation of 6.5% and after-tax earnings of 7%. If Alex wants to have enough life insurance to assure adequate funds for Ellie when she begins college (should he die today), approximately how much insurance should he have for this need alone? (Round your answer to the nearest dollar.)   A)$113,764   B)$75,806   C)$75,451   D)$79,441

Melissa is starting a savings for the initial capital to start a jewelry company right after graduation for 3 years. Her job base salary after graduating is expected to be $85,000 paid through equal payments at the end of every month throughout the year. She assumes a 7% increase in annual salary each year. Melissa expects to pay $1,800 monthly rent for her apartment and an extra $1,500 per month to cover other living expenses and she plans to save the rest. As her salary grows, she is plans to move to a nicer place and lifestyle. The expected rent increase is 5% every year and the expected increase in other expenses is 10%. She plans to keep this constant pattern of expenses and income. Assume a 5% nominal interest rate per year compounded monthly.1. Draw the Cash Flow Diagram2. How much money will she have at the end of year 3?3. If Melissa knows that she needs only $100,000 to start her company, how many months it takes until he saves up this amount with the current saving…

Jason, age 14, was given a choice of $60,000 to be deposited in his account today or his parents would fund 80% of lump sum cost of 4 years of college. The first year of his college cost when he turns 18 is expected to amount to exactly $30,000 a year (i.e., in future dollar terms). Which should he take given a 6% after-tax investment return in both cases? Assume that the cost of education increases by 5% per year. 80% of cost, since its future value would be $93,757 while that of deposit would be $75,749 80% of cost, since its future value would be $117,196 while that of deposit would be $75,749 O deposit, since its future value would be $75,749 while that of 80% of cost would be $72,719 deposit, since its future value would be $100,998 while that of 80% of cost would be $93,757

Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $13,000 available each year for various school and living expenses. If he earns 7 percent on his money, how much must be deposited at the start of his studies to be able to withdraw $13,000 a year for three years?

If the average college tuition cost is $40,000/year currently to go to college, what will it cost for your children in 2045 for a 4-year degree if the inflation rate is 4% per year until then

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?

Marian Plunket owns her own business and is considering an investment. If she undertakes the​ investment, it will pay $5,440 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,360 plus an additional investment at the end of the second year of $6,800. What is the NPV of this opportunity if the interest rate is 1.6% per​ year? Should Marian take​ it?