A father concerned about the rapidly rising cost of a

Assignment Help Corporate Finance

Reference no: EM13363719

A father, concerned about the rapidly rising cost of a college education, is planning a savings program to put his daughter through college. She is 10 years old, plans to enroll at the university 8 years from now, and should take 4 years to complete her education. Currently, the cost per year (for everything-food, clothing, tuition, books, transportation, and so forth) is $8,000, but a 10 percent annual inflation rate in these costs is forecasted. The father's bank account pays 12 percent interest rate, compounded annually. How much will the father have to save each year before the time his daughter starts college in order to put her through school?

Reference no: EM13363719

Questions Cloud

How might a seasonal factors and b different growth rates : how might a seasonal factors and b different growth rates distort a comparative ratio analysis? give some examples. how

Consider that the real risk-free rate is 4 and the : consider that the real risk-free rate is 4 and the maturity risk premium is zero. if the nomincal rate of interest on

Great corporation has the following capital situation debt : great corporation has the following capital situation. debt one thousand bonds were issued five years ago at a coupon

Obrey will start attending college in september 2024 at : obrey will start attending college in september 2024 at which time she will need 10000 for the first year of study. her

A father concerned about the rapidly rising cost of a : a father concerned about the rapidly rising cost of a college education is planning a savings program to put his

Sue wants a yearly income of 80000 starting at her age 66 : sue wants a yearly income of 80000 starting at her age 66 and continuing each year of her retirement no matter how long

Eleanor needs 40000 a year to live on in retirement net of : eleanor needs 40000 a year to live on in retirement net of the income she will receive. she will be retiring in 22

It is important to keep a christian perspective in finances : it is important to keep a christian perspective in finances. a great tool that many churches have utilized is crown

It is important to know what the standard rates are look at : it is important to know what the standard rates are. look at moneycafe. read through the definitions and report the

User Account

All Pages