Question

In: Finance

Classify the problem below using the funding categories A to F You do NOT need to...

Classify the problem below using the funding categories A to F You do NOT need to solve the problem just classify it. Funding Type

A. Lump Sum Funds Lump Sum

B. Lump Sum Funds Ordinary Level Annuity

C. Lump sum funds delayed level annuity

D. Ordinary Level Annuity funds lump sum

E. Ordinary Level Annuity funds delayed level annuity

F. Delayed Level Annuity funds delayed level annuity

1.You plan on attending graduate school for 2 years starting 5 years from now. Each year of graduate school will cost you $25,000. You begin saving for graduate school starting 2 years from now and save for 3 years. How much must you invest each year, starting two years from now, for 3 years such that your investment will grow to just cover the cost of graduate school? Your investments earn 4% APR (compounded annually).

2.If you earn 6% per year on your investments, how much do you have to invest today to “Fund” a payment of $500 due in 3 years?

Solutions

Expert Solution

1 F.DELAYED LEVEL ANNUITY FUNDS DELAYED LEVEL ANNUITY
Pmt Annual amount required per year $25,000
Nper Number of years 2 (Year5 and 6)
Rate Interest rate 4%
Type Beginning of year withdrawal 1
PV Amount of savings required at end of year5 $49,038.46 (Using PV function of excel with Rate =4%, Nper=2, Pmt=-25000,Type=1)
FV Future Value of Savings at end of year5 $49,038.46
Nper Number of years of savings 3 (Year2,3 and4)
Rate Interest rate 4%
Type Beginning of year savings 1
PMT Amount of savings required per year $15,105.19 (Using PMT function of excel with Rate =4%, Nper=3, Fv=-49038.46,Type=1)
2 A. Lump sum Funds Lump Sum
Amount required =500/(1.06^3) $419.81

jeff jeffy answered 6 months ago
Next > < Previous

Related Solutions

Using the below data I need a statistical formula to show which of these categories a...
Using the below data I need a statistical formula to show which of these categories a total of 50 people did the best in in a memory test of words vs. pictures vs. numbers or if it is statistically not able to be proven "reject the null hypothesis" Words Out of 20 Male & Female N=50 Pictures out of 18 Male & Female N=50 Numbers out of 18 Male & Female N=50 Words Pictures Numbers 16 17 12 15 16...
The Problem Below are a series of problems you need to solve using recursive functions. You...
The Problem Below are a series of problems you need to solve using recursive functions. You will write a program that will read commands from an input file, with each command referring to one of the recursive problems to be executed. Each command will be followed (on the same line of input) by the respective parameters required for that problem. Implementation Each recursive function MUST have a wrapper function enclosing it where you will do input/output file processing as well...
The Problem Below are a series of problems you need to solve using recursive methods BY...
The Problem Below are a series of problems you need to solve using recursive methods BY using java . You will write a program that will read commands from an input file, with each command referring to one of the recursive problems to be executed. Each command will be followed (on the same line of input) by the respective parameters required for that problem. (15 points for main method) DescArrayCheck (15 points) Write a recursive method that checks whether an...
Classify the following statements as true (T), or false (F). If you classify statement as false,...
Classify the following statements as true (T), or false (F). If you classify statement as false, correct it, or explain why it is false.             (a) If given stereoisomer rotates the plane of polarized light clockwise, its enantiomer rotates counter‐clockwise by exactly the same magnitude (b) If compound has one stereogenic center with S configuration, it always rotates the plane of polarized light counter-clockwise. (c) Molecule possessing stereogenic centers is always chiral. (d) Mixture of equal amounts of both enantiomers...
Using the provided Java program below, complete the code to do the following. You may need...
Using the provided Java program below, complete the code to do the following. You may need to create other data items than what is listed for this assignment. The changes to the methods are listed in the comments above the method names. TODO comments exist. Apply any TODO tasks and remove the TODO comments when complete. Modify the method findMyCurrency() to do the following:    a. Use a do-while loop b. Prompt for a currency to find. c. Inside this...
Think of someone you recently met for the first time. Do we "automatically" classify people using...
Think of someone you recently met for the first time. Do we "automatically" classify people using the Big Five personality dimensions? In other words, do you instictively notice how extraverted or conscientious a person is?Try classifying the person you recently met using the Big Five personality dimensions. Was it easy or hard to do? Was it useful to you in determining whether you wanted to keep interacting with this person?
What do you do if you're using the F-max table to fulfill homogeneity of variance but...
What do you do if you're using the F-max table to fulfill homogeneity of variance but the standard deviations that you are applying have different sample sizes. What would the degrees of freedom be in this case. One has n=7 and another has n=8.
What specifically do you need to be aware of when you are using or referring to...
What specifically do you need to be aware of when you are using or referring to student development theory?
How are plant disease classified? And why do we need to classify plant disease?
How are plant disease classified? And why do we need to classify plant disease?
What other information might you need in order to make a funding decision?
What other information might you need in order to make a funding decision?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT