Your parents have accumulated a $120,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $15,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years. How much money will your parents have at the end of four years to help you with graduate school? You plan to work on a master’s and perhaps a PhD. If graduate school costs $26,353 per year, approximately how long will you be able to stay in school based on these funds? Use 9 percent as the appropriate interest rate throughout this problem. Round all values to whole numbers Flag question: Question 6 Question 64.5 pts What are the funds available after the Nail Salon? Group of answer choices $100,000 $105,000 $72,000 $98,500 Flag question: Question 7 Question 74.5 pts What is the Present Value of the vacations? Group of answer choices $32,397 $37, 900 $45,000 $24,643 Flag question: Question 8 Question 84.5 pts What are the funds available after vacations? Group of answer choices $46,000 $83,750 $75,002 $72,603 Flag question: Question 9 Question 94.5 pts Future Value: What are the funds available for graduate school? Group of answer choices $102,485 $100,450 $92,000 $108,489 Flag question: Question 10 Question 104.5 pts How many years of graduate school can be funded with your financial management? Hint: Refer to Appendix D for the formula to calculate the available funds after graduate school. Group of answer choices N=5 N=8 N=6 N=2

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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Related questions

Question

Your parents have accumulated a $120,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $15,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years.

How much money will your parents have at the end of four years to help you with graduate school? You plan to work on a master’s and perhaps a PhD. If graduate school costs $26,353 per year, approximately how long will you be able to stay in school based on these funds?

Use 9 percent as the appropriate interest rate throughout this problem. Round all values to whole numbers

Flag question: Question 6

Question 64.5 pts

What are the funds available after the Nail Salon?

Group of answer choices

$100,000

$105,000

$72,000

$98,500

Flag question: Question 7

Question 74.5 pts

What is the Present Value of the vacations?

Group of answer choices

$32,397

$37, 900

$45,000

$24,643

Flag question: Question 8

Question 84.5 pts

What are the funds available after vacations?

Group of answer choices

$46,000

$83,750

$75,002

$72,603

Flag question: Question 9

Question 94.5 pts

Future Value: What are the funds available for graduate school?

Group of answer choices

$102,485

$100,450

$92,000

$108,489

Flag question: Question 10

Question 104.5 pts

How many years of graduate school can be funded with your financial management? Hint: Refer to Appendix D for the formula to calculate the available funds after graduate school.

Group of answer choices

N=5

N=8

N=6

N=2

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