Question

In: Finance

6. Make sure that you draw a high quality, detailed timeline – similar in quality to...

6. Make sure that you draw a high quality, detailed timeline – similar in quality to those in Example 12 and Problem 15.

Assume that you wish to begin saving for your child’s college education via making deposits into an investment account that is expected to earn 8% per year for the first 14 years. After year 14, you will place the money in a less risky investment account that is expected to earn only 5% per year, for as long as you have money in the account.

You currently have $5,000 available, and you will deposit that amount into the savings account today. Thereafter you have decided to make savings deposits 3, 4, 5, … , 9 and 10 years from today. Each of these deposits will be larger than the prior deposit by 7%.  

You’ve estimated that one year of college will cost $52,000 in 18 years, and that the three subsequent years will each cost 5% more than the prior year.

A) Determine the size of the first deposit required at time 3. (Hint: The answer is NOT $9475.37. If you got this, you did not deal with the $5000 at t=0 at all. The correct answer is between $8600 and $8700).

Please help me this is urgent!!!

Solutions

Expert Solution

jeff jeffy answered 1 month ago
Next > < Previous

Related Solutions

Draw a concept map over the topic of Alzheimer's Disease. When you draw it, make sure...
Draw a concept map over the topic of Alzheimer's Disease. When you draw it, make sure to include Right ventricular hypertrophy in the center, then radiating out from that the 5 following categories: 1. Symptoms 2. Causes 3. Risks 4. Diagnoses 5. Treatments Then from each of those categories put a few major factors, Then from each of those categories put 1 or 2 specific factors. Then try to connect items from different categories that are somehow related
Draw a concept map over the topic of Alzheimer's Disease. When you draw it, make sure...
Draw a concept map over the topic of Alzheimer's Disease. When you draw it, make sure to include Right ventricular hypertrophy in the center, then radiating out from that the 5 following categories: 1. Symptoms 2. Causes 3. Risks 4. Diagnoses 5. Treatments Then from each of those categories put a few major factors, Then from each of those categories put 1 or 2 specific factors. Then try to connect items from different categories that are somehow related
Make sure to read the activity notes before you attempt this activity. Detailed instructions for completing...
Make sure to read the activity notes before you attempt this activity. Detailed instructions for completing the activity are included in the notes.   Make sure to work all the problems in this activity. The activity includes three problems, each on a different worksheet (see the tabs below: Problem 1,   Problem 2, etc.) Red Book Inc. Book sales during the first four months of the year were: Month # of Books Sold Jan               39 Feb               88 Mar               46...
1) a)draw the structure of histidine at pH 4 and at pH 8. Make sure you...
1) a)draw the structure of histidine at pH 4 and at pH 8. Make sure you clearly indicate all charges. b)Briefly describe the nature of the H-bonds that stabilize parallel and antiparallel -sheets. How do the H-bonds in these two types of secondary structure differ? You can draw simple diagrams if you wish, but there is no need for detailed structures.
Draw a diagram that illustrates lipid digestion and absorption, make sure you include where these steps...
Draw a diagram that illustrates lipid digestion and absorption, make sure you include where these steps are occurring and the important role of bile! Make sure it is clearly labeled and include a brief description for any sequences and processes.
the assignment is to compare and contrast two ads. Make sure the ads are similar enough...
the assignment is to compare and contrast two ads. Make sure the ads are similar enough to be compared and different enough to be contrasted: two soap ads, two cereal ads, two ads that are for baby products, etc 1 page
*Make sure to draw a normal distribution curve to indicate the position and range of Z....
*Make sure to draw a normal distribution curve to indicate the position and range of Z. 1. Let X~N(10,9). Find P(X<8), P(X ≥ 12), P(2 ≤ X ≤ 10) 2. In each part below, find the value of c that makes the probability statement true; 1)  ∳(C) = 0.9463 2) P(IZI ≤ C) = 0.95 3) P(IZI ≤ C) = 0.99 4) P(IZI ≤ C) = 0.05 3. If X~N(80,10²), compute; 1) P(X < 100) 2) P(75 < X  < 100) 3)...
case study 1.    Draw an Entity Relationship Diagram (ERD) for the following problem. Make sure you identify...
case study 1.    Draw an Entity Relationship Diagram (ERD) for the following problem. Make sure you identify correct relationships, attributes, and identifiers (keys). 2.    Implement the database design into tables using an industrial-strength database management system (e.g. Oracle SQL+). case: HELP is a voluntary organization that provides aid to people. Based on the following brief description of operations, create the appropriate fully labeled Crow’s Foot ERD. Individuals volunteer their time to carry out the tasks of the organization. For each volunteer, their...
Draw a graph of an aggregate demand shock using the AS-AD diagram. Make sure to label...
Draw a graph of an aggregate demand shock using the AS-AD diagram. Make sure to label the axes correctly as well as show the impact of the shock on output, inflation and unemployment.
Draw a graph representing a loanable funds market. Assume inelastic supply of loanable funds. Make sure...
Draw a graph representing a loanable funds market. Assume inelastic supply of loanable funds. Make sure to label axes, curves, and equilibrium. Write down equations for each of the curves. b) Interpret the slope of the demand for loanable funds curve. c) Interpret the slope of the supply of loanable funds curve. In 2020, the COVID pandemic has spread around the world. Some substantial policy changes in response to the adverse effects of the pandemic in the US included an...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT