How much will you need to have set aside to pay for 4 years of college if the freshman year cost is expected to be $70,000

How much will you need to have set aside to pay for 4 years of college if the freshman year cost is expected to be $70,000 and is expected to rise 2% annually while they attend college? Assume you can earn 4% on your funds.

A. $272,025. B. $254,100. C. $264,260. D. $309,140. E. $280,000.

Expert Solution

Answer: A. $272,025.

jeff jeffy answered 2 years ago

How much would an investor have to set aside today in order to have $25,000 ten...

How much would an investor have to set aside today in order to have $25,000 ten years from now if the current rate is 12%?

Your first job out of college will pay you $70,000 in year 1 (exactly one year...

Your first job out of college will pay you $70,000 in year 1 (exactly one year from today). You estimate that your salary will grow at 9% per year for 40 years (compounded annually), when you'll stop working. If the applicable discount rate is 15%, what is the present value of these future earnings today? Round to the nearest cent.

Assume you have a student loan that you will pay off in 10 years. How much...

Assume you have a student loan that you will pay off in 10 years. How much will you save in interest if you refinance at the new rate? Use the accompanying table of monthly payments on a $1,000 loan. Amount of Loan Original Rate New Rate $19,000 10% 8% The total savings in interest will be?

On a 15-year, $200K mortgage at 4% APR, how much interest will you pay in ONLY...

On a 15-year, $200K mortgage at 4% APR, how much interest will you pay in ONLY the second year if you make the regular monthly payments? Multiple Choice $8,366 $17,170 $1,497 $680 $9,083

You set up a college fund in which you pay $3500 each year at the beginning...

You set up a college fund in which you pay $3500 each year at the beginning of the year. How much money (in $) will you have accumulated in the fund after 29 years, if your fund earns 7% compounded annually?

How much do you need to invest today in order to have enough money for your child’s college?

Congratulations, you’ve just become a parent! You want to make sure your new baby has the best education possible so you plan to make an investment today to pay for college. Your new baby is amazing, but is no Doogie Howser, so you will be paying for your child’s college in 18 years from now. You expect that college will cost $100,000 at that time. In the meantime, your financial adviser tells you that you can earn 7% on your...

Question

How much will you need to have set aside to pay for 4 years of college if the freshman year cost is expected to be $70,000

Solutions

Expert Solution

Related Solutions

How much would an investor have to set aside today in order to have $25,000 ten...

Your first job out of college will pay you $70,000 in year 1 (exactly one year...

Assume you have a student loan that you will pay off in 10 years. How much...

On a 15-year, $200K mortgage at 4% APR, how much interest will you pay in ONLY...

You set up a college fund in which you pay $3500 each year at the beginning...

How much do you need to invest today in order to have enough money for your child’s college?

How much interest will you pay during the last six years of a 15-year $300,000 loan...

You set up a college fund in which you pay $5000 each year atthe beginning...

You set up a college fund in which you pay $2500 each year atthe end...

How much money do you need to invest now, to have $50,000 in 10 years? Assume an...