QUESTION 93Stephanie wanted to save for her daughter's education Tuition costs $10,000 per year in today's dollars. Her daughter was born today and will go to school starting at age 18. She will go to school for 4 yearsStephanie can earn 12% on her investments and tuition inflation is 6% How much must Stephanie save at the beginning of each year if she wants to make her list savings payment at the beginning of herdaughter's first year of college?O $1.889.$2.104.O $2,389$1,687

The time value of money recognizes the idea that the value of an amount of money today differs from…

Stephanie wanted to save for her daughter's education Tution costs $10,000 per year in today's dollars Her daughter was bo 1550 Stephanie can eam 12% on her investments and tution inflation is 6% How much must Stephanie save at the beginning of each year if she wants to make her lust savings p daughter's first year of college? $1,889 $2,104 O $2,389 $1,687 beginning of her

Stephanie wanted to save for her daughter's education Tution costs $10,000 per year in today's dollars Her daughter was bo 1550 Stephanie can eam 12% on her investments and tution inflation is 6% How much must Stephanie save at the beginning of each year if she wants to make her lust savings p daughter's first year of college? $1,889 $2,104 O $2,389 $1,687 beginning of her

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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32 points You decide to get ahead and start saving for your first condo after college. You estimate your dream condo is going to be $250,000 in 5 years once you graduate and get your job. You decide to put in annual payments on January 1st of every year into an investment account that pays 7.5% interest. How much will your annual payments need to be so you can pay for your condo in cash? (Round to the nearest dollar) $40038 $39.59096 $43041 $42,904
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Engineering Economics You need P40,000 per year for four years to go to college. Your father invested P380,000 in a 7% compounded monthly account for your education when you were born. If you withdraw the P40,000 at the end of your 17th, 18th, 19th, and 20th years, how much money will be left in the account at the end of your 20th year?
SUBJECT: ENGINEERING ECONOMICS Please show the complete solution. The final answer is already provided. Thomas deposited 300,000Php now, so that his 3 year old daughter will receive 6 equal amounts of money yearly, starting on her 18th birthday. If money earns 20% compounded annually. How much the girl received yearly? Answer: A = P1,158,244.98
You want to have $10,500 saved 8 years from now. How much less can you deposit today to reach this goal if you can earn 7 percent rather than 5 percent on your savings? Multiple Choice $1,007.94 $995.72 $1,023.90 $1,036.34
D Listen Ms. Spencer just retired with $360,000 in her retirement account. Assuming that she can earn 4.8% compounded monthly on her funds, how many month-end withdrawals of $4,000 will she be able to take before the fund is depleted? Round your answer to 2 decimal places. Your Answer: Answer
Your older sister deposited $50,000 today at 14 percent interest for 12 years. You would like to have just as much money at the end of the next 12 years as your sister will have. However, you can only earn 12 percent interest. How much more money must you deposit today than your sister did if you are to have the same amount at the end of the 12 years? Question 15 options: 9,863 10,458 7,120 8,321 11,832
In 25 years, you are hoping to have saved $120 000 towards your child’s university education. If you are able to save $3000 at the end of each year for the next 25 years, what rate of return must you earn on your investments in order to achieve your goal? a. 5% b. 6% c. None of answers given d. 4%
iv Jaimie just graduated and would like to purchase a house in 4 years. If she has $215 automatically invested out of each paycheck at the end of each month for 4 years into an emerging markets value fund paying 11% (compounded monthly), how much of a down payment will she have at the end of 4 years? a. $133,058 b. $12,891 c. $12,600 d. $130,000 e. $12,461

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