Saving for the college education of your two children

Assignment Help Financial Management

Reference no: EM13895485

You are saving for the college education of your two children. They are two years apart in age, one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $35,000 per year per child, payable at the beginning of each school year. The annual interest rate is 8.5%

How much money must you deposit in an account each year to fund your children's education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college.

Reference no: EM13895485

Questions Cloud

Identify and explain relevant conflict theories : Film Analysis on the film John Q. This paper should analyze in detail the conflict strategies used in the movie. Identify and explain relevant conflict theories that were illustrated in the movie with the characters of the movie

Maximize share value and minimize shareholder costs : In each of the theories of capital structure the cost of equity rises as the amount of debt increases. So why don't financial managers use as little debt as possible to keep the cost of equity down? After all, isn't the goal of the firm to maximize s..

What were the dividend yield and the capital gains yield : Suppose a stock had an initial price of $80 per share, paid a dividend of $.60 per share during the year, and had an ending share price of $72. Compute the percentage total return. What were the dividend yield and the capital gains yield?

What is the current value of the annuity : A five-year annuity of ten $8,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity five years from now? What is ..

Saving for the college education of your two children : You are saving for the college education of your two children. They are two years apart in age, one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $35,000 per y..

Calculate the total return on this investment : Marie and Bob Houmas purchased 208 shares of General Electric stock for $24 a share. One year later, they sold the stock for $31 a share. They paid their broker a $132 commission when they purchased the stock and a $154 commission when they sold it. ..

Provide a detailed rationalization and conclusion : The expected findings and summary should address the significance of the study and provide a detailed rationalization and conclusion, using appropriate references from the relevant literature.

Define a strategic management plan using swot analysis : Create a SWOT analysis. Define a strategic management plan, using your SWOT analysis. Identify the (internal) strengths of the organization structure

Structure of authority in a probation department : What are some of the types of authority that you might delegate to the various members of your staff? Explain the rationale for each delegation. What are some of the types of authority that you might delegate to the probation officers in your dep..

User Account

All Pages