What quarterly expected return on savings contribution

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1. Lina currently has 38,000 dollars saved and plans to save 6,900 dollars per quarter for 4 years. Her first savings contribution is expected later today. What quarterly expected return does Lina need to earn to have 190,375 in 4 years? (Answer as a quarterly rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.)

2. Chen has nothing saved for college. He will need to pay 76,480 dollars per year to the school for 5 years. The first of these payments will be made in 5 years. Chen can earn 6.58 percent per year. How much does Chen need to save each year for 4 years to have exactly enough to pay for his education if he makes his first savings contribution later today and all savings contributions are equal?

Reference no: EM131873191

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