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A couple has just given birth to a baby and named him Jimmy. They want to setup a college savings account for Jimmy and start saving for his college education. The following facts will help you work this problem:
Current Cost of Tution, Room & Board $25,000
Expected Average Inflation 5%
Expected Average Percentage Return on Savings 4%
Years until you need the first tution payment 18
You will make 18 yearly payments with the first one starting a year from now.
How much will you need at the end of 18 years to fund Jimmy's college education for 4 years? Round your answer to a whole number (Example 150450.61 rounded to 150451 with no commas or dollar signs).
How much will you need to save each year in Jimmy's account to reach your goal of having enough money to fund his college education at the end of 18 years? Round your answer to a whole number (Example 1450.61 rounded to 1451 with no commas or dollar signs)
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Find the periodic payment R required to amortize a loan of P dollars over t years with interest charged at the rate of r% year compounded m times a year.
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George Jefferson established a trust fund that provides $171,500 in scholarships each year for worthy students. The trust fund earns a 2 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest i..
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Short term financial planning for the pdc company was described earlier in this chapter. refer to the pdc company projected monthly operating schedule.
In an efficient market, the price of a security will:
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