Your cousin is entering medical school next fall and asks you for financial help. He needs $65,000each year for the first two years. After that, he is in residency for two years and will be able to pay you back$10,000each year. Then he graduates and becomes a fully qualified doctor, and will be able to pay you$40,000each year. He promises to pay you$40,000for 5 years after he graduates. Are you taking a financial loss or gain by helping him out? Assume that the interest rate is5%and that there is no risk.

Your daughter wants to the University of Cincinnati. She is already planning to start in 10 years (which is when her first tuition payment is due). Her tuition will be $19,886 per year for four years. The relevant discount rate is 8.01 percent per year. You plan to save for her education by setting aside the same amount of money per year for 9 years. What is the amount you need to save per year if you start saving at the end of this year? O $32,914.10 O $5,271.07 $3,657.12 $30,473.20 O $7,316.70

Your daughter needs to be able to draw $50,000 a year from her college savings fund (you started from birth) to pay for college expenses to obtain a medical degree (assume she spends 4 years for bachelor, 4 years for med school, then additional 2 years as resident and yearly spending will be consistent from year to year). At start of her college career, she intends to invest her savings in government securities that should return 5.5% a year compuounded continuously. a. Obtain the equation for dP/dt and then find the genearl solution of P(t) with, as yet undetermined, initial value P_0. b. How large must your daughter's initial college savings be so that she can continue drawing her $50,000 income until she becomes a doctor?

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

A man wants to help provide a college education for his young daughter. He can afford to invest $1500/yr for the next 5 years, beginning on the girl’s 5th birthday. He wishes to give his daughter $10,000 on her 18th, 19th, 20th, and 21st birthdays, for a total of $40,000. Assuming 6% interest, what uniform annual investment will he have to make on the girl’s 9th through 17th birthdays?

Your grandmother loves you and wants you to get a graduate degree.  She promises to pay you $1,225 right away and an equal amount every 6 months for the a total of 5 years to encourage you to continue your graduate education and get a Master of Business Administration (MBA) degree at Cal State LA.  She really does love you.  If you don’t spend any of the money amounts that she gives you, how much will you have accumulated at graduation if you could invest the funds at 5% compounded semiannually?

You decide to do some remodeling in the kitchen. Your parents agree to lend you the money, but you insist on paying them interest. The agreement is that they will lend you $6000.00 at a simple interest rate of 1.5% per year. In how many months will the interest be $360.

Your son Bob is 14 years old today. You are planning for his college education. Bob will start school on his 19th birthday. You wish to set aside some money early to send Bob to four years of school. You have decided that you will give Bob $15,000 per year for each of his first two years of college, and $20,000 per year for each of his last two years of college. You will give these amounts to Bob at the beginning of each school year. You will make 5 equal annual deposits to fund the account. The first payment will be made one year from today and the last payment will be made the day Bob leaves for college. You wish to have just enough money in the bank to fund Bob's entire education on the day that he leaves for school. Any money that is in the aCcount will continue to earn interest while Bob is in school. Because of a new program, the bank has agreed to give you a 10 percent, nominal compounded annually, return on your investments throughout the entire time period. How much do you…

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $400,000 today or receive payments of $16,000 a year for 15 years. You can earn 6 percent on your money. Which option should you take and why?

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?