How much do the parents need to save annually at year

Assignment Help Financial Management

Reference no: EM131881729

a. What is the present value of the cost of college education for 4 children ages 1, 3, 5 and 7. The current cost of college is $25,000.

The children will begin college at age 18 and be in college for 4 years. Education inflation is expected to be 6% and the parents portfolio rate of return is 8%.

b. How much do the parents need to save annually at year end through the education of the youngest child to pay all college costs?

Reference no: EM131881729

Questions Cloud

Find the total monthly profit with production quantity : Set up a spreadsheet model to calculate total monthly profit with production quantity as the decision variable - assuming that every case will be sold.

Determine the cost of goods sold and ending inventory : Determine the cost of goods sold and ending inventory for the month using specific identification.

What role do payables and accruals play in the cash cycle : What is the relationship between days sales outstanding (DSO) and total accounts receivable turnover? Which of balance sheet?

Determine the amount of budgeted cash payments for january : Determine the amount of budgeted cash payments for January selling and administrative expenses.

How much do the parents need to save annually at year : How much do the parents need to save annually at year end through the education of the youngest child to pay all college costs?

Calculate fica social security taxes payable : Calculate FICA Social Security taxes payable and FICA Medicare taxes payable by the employees of Royal Company.

What was the price of the bonds at issuance : On January 1, 2013, Gent Inc. issued 8% bonds with a face amount of $800,000. The bonds mature in 10 years. Interest is paid semiannually on June 30th.

Why do we not subtract the risk-free rate from smb or hml : Cahart (1997) incorporated a forth factor so called "momentum" into the Fama-French model. Define "momentum" and describe how it is measured.

What is the amount of the gain-loss : An investor own 500 shares of stock that has been held for a 5 years that has a basis of $20,000. The investor also owns 500 shares which have been held.

User Account

All Pages