Deposit in a mutual fund account

Assignment Help Business Economics

Reference no: EM13982633

You are trying to determine how much your family needs to set aside for the four years you plan to attend college for your tuition. You expect your tuition to increase your sophomore year by 11%, 12% your junior year, and 9% your senior year. Your family's savings account earns 4% for the first two years, then increases to 6% for the last two years. The annual cost of tuition at the beginning of your first year in college will be $11,000. How much money will you and your family have to deposit in a mutual fund account one year prior to your first year to pay for your tuition for the 4 years you will spend earring your degree in engineering?

a) $48,707

b) $46,060

c) $45,606

d) $49,777

Reference no: EM13982633

Questions Cloud

Should the firm continue to operate : A firm currently uses 100 workers to produce 200 units of output per day. The daily wage (per worker) is $80, and the price of the firm's output is $50. The cost of other variable inputs is $600 per day. The firm’s fixed cost is 8,000. The marginal c..

Increase in capital affect the graph of demand for labor : If the real wage is equivalent to the marginal product of labor such that w=MPL=9, how much labor will be demanded? What happens to the demand for labor when the real wage declines to $5? Now assume that the capital used in the production process is ..

The nature of the information collected : Reflect on what steps you might take to help improve the quality of the way the need for change is diagnosed in your init or department.

Who would tend to benefit more from social security : Which of the following would describe someone who would tend to benefit more from Social Security? After the increase in government spending (point 3), what is the growth rate of the velocity of money? After the increase in government spending (point..

Deposit in a mutual fund account : You are trying to determine how much your family needs to set aside for the four years you plan to attend college for your tuition. You expect your tuition to increase your sophomore year by 11%, 12% your junior year, and 9% your senior year. How muc..

What is the implied valuation of a life year : Suppose that the equilibrium wage in industry A is $39,000. Industry B is riskier with workers having a 6% greater chance of dying on the job; the wage in industry B is $59,000. What is the implied valuation of a life year?

Unambiguously cause an increase in the equilibrium price : Which of the following events would unambiguously cause an increase in the equilibrium price of cotton shirts?

Prepare journal entries to record quark transaction : Prepare journal entries to record Quark's transaction for the month of January. Do not close out the manufacturing overhead account.

GDP can increase from one year to the next by : GDP can increase from one year to the next by: Increases in prices while quantities of goods and services are constant. Increases in the quantities of goods and services produced while prices remain constant. Both prices and quantities of goods and s..

User Account

All Pages