Question
In: Finance
Your parents have accumulated a $170,000 nest egg. They have been planning to use this money...
Your parents have accumulated a $170,000 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 $32,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years. Use 8 percent as the appropriate interest rate throughout this problem. Use Appendix A and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a. How much money will your parents have at the
end of four years to help you with graduate school, which you will
start then? (Round your final answer to 2 decimal
places.)
Funds available for graduate school?
b. You plan to work on a master’s and perhaps a
PhD. If graduate school costs $29,780 per year, approximately how
long will you be able to stay in school based on these funds?
(Round your final answer to 2 decimal
places.)
Number of years?
Solutions
jeff jeffy answered 3 months agoRelated Solutions
Your parents have accumulated a $150,000 nest egg. They have been planning to use this money...
Your parents have accumulated a $150,000 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 $18,000 to help her get started, and they have decided to
take year-end vacations costing $12,000 per year for the next four
years. Use 6 percent as the appropriate interest rate throughout
this problem....
Your parents have accumulated a $140,000 nest egg. They have been planning to use this money...
Your parents have accumulated a $140,000 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 $17,000 to help her get started, and they have decided to
take year-end vacations costing $7,000 per year for the next four
years. Use 7 percent as the appropriate interest rate throughout
this problem....
Your parents have accumulated a $160,000 nest egg. They have been planning to use this money...
Your parents have accumulated a $160,000 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 $31,000 to help her get started, and they have decided to
take year-end vacations costing $11,000 per year for the next four
years. Use 9 percent as the appropriate interest rate throughout
this problem....
Your parents have accumulated a $150,000 nest egg. They have been planning to use this money...
Your parents have accumulated a $150,000 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 $18,000 to help her get started, and they have decided to
take year-end vacations costing $12,000 per year for the next four
years. Use 6 percent as the appropriate interest rate throughout
this problem....
Your parents have accumulated a $140,000 nest egg. They have been planning to use this money...
Your parents have accumulated a $140,000 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 $23,000 to help her get started, and they have decided to
take year-end vacations costing $9,000 per year for the next four
years. Use 9 percent as the appropriate interest rate throughout
this problem....
The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a...
The Johnsons have accumulated a nest egg of $50,000 that they
intend to use as a down payment toward the purchase of a new house.
Because their present gross income has placed them in a relatively
high tax bracket, they have decided to invest a minimum of
$2700/month in monthly payments (to take advantage of the tax
deduction) toward the purchase of their house. However, because of
other financial obligations, their monthly payments should not
exceed $3000. If the Johnsons...
The Johnsons have accumulated a nest egg of $40,000 that they intend to use as a...
The Johnsons have accumulated a nest egg of $40,000 that they
intend to use as a down payment toward the purchase of a new house.
Because their present gross income has placed them in a relatively
high tax bracket, they have decided to invest a minimum of
$2300/month in monthly payments (to take advantage of the tax
deduction) toward the purchase of their house. However, because of
other financial obligations, their monthly payments should not
exceed $2900. If local mortgage...
The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a...
The Johnsons have accumulated a nest egg of
$50,000 that they intend to use as a down payment
toward the purchase of a new house. Because their present gross
income has placed them in a relatively high tax bracket, they have
decided to invest a minimum of $2900/month in
monthly payments (to take advantage of the tax deduction) toward
the purchase of their house. However, because of other financial
obligations, their monthly payments should not exceed
$3500. If local mortgage...
The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a...
The Johnsons have accumulated a nest egg of $50,000 that they
intend to use as a down payment toward the purchase of a new house.
Because their present gross income has placed them in a relatively
high tax bracket, they have decided to invest a minimum of
$2400/month in monthly payments (to take advantage of the tax
deduction) toward the purchase of their house. However, because of
other financial obligations, their monthly payments should not
exceed $3000. If local mortgage...
The Johnsons have accumulated a nest egg of $40,000 that they intend to use as a...
The Johnsons have accumulated a nest egg of $40,000 that they
intend to use as a down payment toward the purchase of a new house.
Because their present gross income has placed them in a relatively
high tax bracket, they have decided to invest a minimum of
$2500/month in monthly payments (to take advantage of the tax
deduction) toward the purchase of their house. However, because of
other financial obligations, their monthly payments should not
exceed $3100. If local mortgage...
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