Reference no: EM132968997
Question - You are considering a 3-year graduate degree program in art history offered in Italy; if you decide to go and are admitted to the program, you would begin the program 2 years from now. The current tuition for the program (expressed in USD for convenience) is $27,000 per year; you anticipate that the tuition will grow 3% per year for the foreseeable future, with the tuition paid at the beginning of each year. That is, the first tuition payment will be due in two years, the second in three years, etc.
You anticipate living expenses of $24,000 each year, paid as $2,000. In addition, you will have a one-time moving expense to Italy of $12,000 and a one-time moving expense back to the U.S. in 5 years of $15,000. That is, the first living expense and the one-time moving expense will be paid in two years. The return moving expense will be paid in 5 years.
You need to save money for the program. Starting next month, you will make an even monthly payment into the account for 23 months (so that the last payment into this account will come one month prior to the anticipated first tuition payment. Your opportunity cost of funds is 4% per year, compounded monthly.
What is the effective monthly rate implied by your opportunity cost of funds?
What is the effective annual rate implied by your opportunity cost of funds?
What is the value today of the program's tuition?
What is the value today of the expenses you will incur during the program (including both living and moving expenses)?
What is the monthly payment into the savings account that is required in order to pay for the program?
|
Journalize the assignment of the costs
: Sheridan Company purchases $50,900 of raw materials on account, Journalize the assignment of the costs to the processing departments
|
|
Which telecom company gives better mobile sim plan
: Which telecom company gives better mobile sim plan in range of 40 to 50 australian dollars in Australia? what are the reasons?
|
|
How much profit will you earn
: Assuming no transaction costs, is there an arbitrage opportunity for a 90-day investment and if so, how much profit will you earn
|
|
How many units need to be sold for the company
: Company is experiencing erratic sales of its product - a special battery. This month it generated a loss of $36,000. How many units need to be sold
|
|
What is the value today of the program tuition
: You anticipate living expenses of $24,000 each year, paid as $2,000. What is the value today of the program's tuition
|
|
Calculate both the average tax rate and marginal tax rate
: During the year the firm sold stock that it held in another company for $180,000, Calculate both the average tax rate and marginal tax rate
|
|
What is the gross pay for the employee
: Payroll data for the current week are as follows: hours worked, 42; federal income tax withheld, $351; What is the gross pay for the employee
|
|
What amount is excluded from rona estate
: Rona died in the current year when the property was worth $640,000. What amount of the $640,000 is excluded from Rona's estate
|
|
What is the current price of this promissory note
: A promissory note with a face value of P500,000 has 45 days until maturity. If the relevant yield is 7% then what is the current price of this promissory note
|