Dustin and christy are saving for their daughter

Reference no: EM131017224

Dustin and Christy are saving for their daughter, Ella's, college. They just received an inheritance and want to put some of it into a fund (one lumpsum deposit today) that will pay for Ella's college, which will begin in 15 years. Ella's college expenses are estimated to be $75,000 15 years from today, and are expected to grow by 9% per year for the remaining three years. How much money should Dustin and Christy put in the fund today? Assume they can earn 8% on their investment.

Reference no: EM131017224

Questions Cloud

Explain the impact of the benzene decision : Explain what is meant by the term hierarchy of controls, and give an example of each type of control. response should be at least 200 words. with citations

What expected rate of return for your common stock portfolio : Given the following market values of stocks in your portfolio and their expected rates of return, what is the expected rate of return for your common stock portfolio?

Describe and analyze the five elements of a contract : "The below-signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ." Describe and analyze the five elements of a contract that must exist for this agreement to be enforc..

What price would each bond sell : Four years ago, your firm issued $1,000 par, 25-year bonds, with a 7 percent coupon rate and a 10 percent call premium. If these bonds are not called, what is approximate yield to call for the investors who originally purchased them?

Dustin and christy are saving for their daughter : How much money should Dustin and Christy put in the fund today? Assume they can earn 8% on their investment.

Why have developmental theories been produced : Why have developmental theories been produced? As a police chief or police executive, would the study of criminological theories help in the leadership of your department? Why or why not

Find an equation of the line satisfying the given conditions : Find an equation of the line satisfying the given conditions. Find an equation of the line with slope m that passes through the given point. Put the answer in slope-intercept form (-3, -9), m = 0.

Calculate the amount of exchange gain or loss : Calculate the amount of goodwill that should be presented on Prints Galore's December 31, 2016 consolidated statement of financial position.

Write a brief annotation on safety of motor : The main concern of my topic is the safety of Motor Carriers on the road that directly affect financial costs as well as personal costs while they are operating shipping vehicles. When I say safety I am referencing crashes that causes injuries or ..

User Account

All Pages