You decide to create a college fund for your 5-year-old child, with an interest rate of...

You decide to create a college fund for your 5-year-old child, with an interest rate of 6% compounded quarterly. Deposits will be made every month until the child is 18. First withdrawal will be at age 20. College expenses are estimated to be $30,000/year in today’s dollars for 4 years, starting at age 20. The inflation rate is 5%/year. Find the amount of monthly deposits in actual dollars.

Expert Solution

Rahul Sunny answered 6 months ago

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Assume you graduate from college with $32,000 in student loans. If your interest rate is fixed...

Assume you graduate from college with $32,000 in student loans. If your interest rate is fixed at 4.60% APR with monthly compounding and you repay the loans over a 10-year period, what will be your monthly payment?

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