You deposit today to just be able to fund tuition

Assignment Help Financial Management
Reference no: EM131949710

Your child will go to a private school starting in 4 years. The tuition for the school is $32974 per year, for 4 years starting in year 4. If the interest rate is 5% compounded annually, how much must you deposit today to just be able to fund the tuition?

Do your intermediate calculations to 4 decimal places and then round the final answer to the nearest dollar.

State your answer as the number only with no $ sign or commas,

Reference no: EM131949710

Questions Cloud

Considered benefit of the corporate form of organization : Which of the following is (are) considered a benefit of the corporate form of organization?
Difference between the implied price and the actual price : How do you explain the difference between the implied price and the actual price?
Decided to begin investing for retirement : Bill has decided to begin investing for retirement. How much will he have in the account after 23 years?
How many months will it take to pay off card : If he does not charge anything else and sends the credit card company $546 every month, how many months will it take to pay off the card?
You deposit today to just be able to fund tuition : If the interest rate is 5% compounded annually, how much must you deposit today to just be able to fund the tuition?
Calculate what the annual payment : calculate what the annual payment would be if the buyer received an interest rate of 4.5%.
What is the project discounted payback : Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback?
Total dollars of interest will you pay over life of loan : If you select the 60 month loan instead of the 36 month loan, how much more total dollars of interest will you pay over the life of the loan?
What is the amount of the final one-off repayment : What is the amount of the final one-off repayment that is due on 30 June 2022 to fully pay off the loan?

Reviews

Write a Review

Financial Management Questions & Answers

  How much will you have in 20 years

Suppose you have $50,000 to invest today. If you can earn a 12 percent return and no additional annual savings, how much will you have in 20 years?

  Balloon payment be in order to completely pay off the loan

Jesse buys a new house in Santa Barbara, California. How much must the balloon payment be in order to completely pay off the loan?

  According to the gap model

According to the gap (repricing) model, what will happen to net income if interest rates increase by two percentage points?

  What is the risk-free spot interest rate

Zero-coupon T-bills expiring on 3/15/2018 are currently selling for 99.5013. what is the risk-free spot interest rate?

  What is the internal rate of return of this plot of land

PalmCorp is a plantation company that has just invested in a new plot of land this month. PalmCorp only expects cash flows to be generated from this investment in 2 years’ time. What is the internal rate of return of this plot of land?

  Balance of inventory and balance of depreciation

What is the balance of inventory and the balance of depreciation on Brenda's Bar and Grill’s balance sheet?

  Coupon bond paying coupons semiannually is callable

A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. What is the yield to call?

  What is the cost of the preferred stock

LL Incorporated's currently outstanding 8% coupon bonds have a yield to maturity of 12%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 30%, what is LL's after-tax cost of debt?..

  Shares outstanding and cost of capital

If Newerks has 5 million shares outstanding and a cost of capital of 14%, what is Newerks stock price at the end of 2016?

  What will be the loans EAR

You want to buy a car, and a local bank will lend you $30,00. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 10% with interest paid monthly. what will be the monthly loan payment? What will be the loa..

  What was its interest expense

Molteni Motors Inc. recently reported $3.25 million of net income. Its EBIT was $7.75 million, and its tax rate was 35%. What was its interest expense? Round your answer to the nearest dollar. Enter your answer in dollars. For example, an answer of $..

  What lump sum deposited today

What lump sum deposited today at 8?% compounded quarterly for 5 years will yield the same final amount as deposits of ?$6000 at the end of each? 6-month period

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd