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?
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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?
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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)?If the university’s College of Engineering can earn 5% on its investments, how much should be in its savings account to fund one $10,000 scholarship each year for 4 years?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.)
- You wish to establish a permanent scholarship at Bond University providing a worthy student with $1000 annually. If invested monies generate an 8% return, how much is needed in the scholarship fund?You've decided to leave a scholarship to Calu's business program in the amount of $3,000 annually. If you can earn 6% on your money annually and inflation is 2%, how much do you need to set aside to ensure the program never runs out of money?You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If the appropriate discount rate is 3% per 6-month period, how much money will you have to donate ← today to endow the scholarship? You will need to donate $ (Round to the nearest dollar.) CIT
- You have saved $120,000 for your child to attend college. If it is in an account earning an annual rate of 6%, how much can you take out in equal payments at the end of each of the next four years to pay for their education? Answer: future value = $5,24,953.92Question: How much can you take out in equal payments at the beginning of each of the next four years to pay for their education?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 $69.502You want to endow a scholarship that will pay $ 8 comma 000$8,000 per year forever, starting one year from now. If the school's endowment discount rate is 4 %4%, what amount must you donate to endow the scholarship? How would your answer change if you endow it now, but it makes the first award to a student 10 years from today?
- You want to endow a scholarship now that will pay $7,000 per year forever, starting the first award 10 years from now. If the school's endowment discount rate is 6%, what amount must you donate today to endow the scholarship? The amount you must donate today to endow the scholarship is $ (Round to the nearest cent.).You want to start a scholarship fund at your alma mater with giving one $10,000 scholarship annually beginning one year from now. And you have at most $150,000 to start the fund. You also want the scholarship to be given out indefinitely. Assuming an annual interest rate of 8% (compounded continuously , do you have enough money for the scholarship fund? 15%4 (Hint: 1. Derive the formula of the present value of a perpetuity .2. Find the present value.)Northeastern costs approximately $50,000 per year for a four-year program, whether completed in four years or five. Assume that a student’s parents realized 15 years ago that college was going to cost $50,000 per year for four years, and wondered how much they would have to save each year to have the money to pay for the student’s education. The assumption is that payments are made into the college fund each year (as an ordinary annuity), and payments are withdrawn from the fund at the end of the relevant years.The key information for this scenario is as follows: The number of years of contributions is 18. Assume for simplicity that the college payments will be made at the end of years 15, 16, 17, and 18, that is just after each deposit in those years. The interest rate is 10 percent. College costs are $50,000 per year, and are assumed to be the same for each of the four years. Using the key information for the scenario above, how much would the parents have to save each year for…