Thursday

April 17, 2014

April 17, 2014

Posted by **Alice** on Thursday, October 20, 2011 at 11:13pm.

So far,John and Daphne hace accumulated $15,000 in their college savings account (at t=0). Their long-run financial olan is to add an additional $5,000 in each of the next 4 years(at t=1,2,3, and 4). Then they plan to make 3 equal annual contributions in each of the following years, t=5,6, and 7. They expect their investment account to earn 9%. How large must the annual payments at t= 5,6, and 7 be to cover Ellen's anticipated college costs?

a. $1,965.21

b. $2,068.64

c. $2,177.51

d. $2,292.12

e. $2,412.76

- Finance -
**Anonymous**, Sunday, October 23, 2011 at 5:03pm2412.76

- Finance -
**Anonymous**, Saturday, January 21, 2012 at 7:03pm. John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 (t=0), and she will be entering college 8 years from now (at t=8). College tution and expenses at State U. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. Ellen should graduate in 4 years-if she takes longer or wants to go to graduate school, she will be on her own. Tution and other costs will be due at the begining of each school year (at t=8,9,10, and 11).

So far,John and Daphne hace accumulated $15,000 in their college savings account (at t=0). Their long-run financial olan is to add an additional $5,000 in each of the next 4 years(at t=1,2,3, and 4). Then they plan to make 3 equal annual contributions in each of the following years, t=5,6, and 7. They expect their investment account to earn 9%. How large must the annual payments at t= 5,6, and 7 be to cover Ellen's anticipated college costs?

a. $1,965.21

b. $2,068.64

c. $2,177.51

d. $2,292.12

e. $2,412.76

- Finance -
**Anonymous**, Saturday, January 21, 2012 at 7:08pm5. John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 at (t = 0), and she will be entering college 8 years from now (at t = 8). College tuition and expenses at State U. are currently $14,500 a year, but they are expected to increase at a rate of 3.5% a year. Conclusion

- Finance -
**shrestha**, Tuesday, February 28, 2012 at 1:11am2412

**Related Questions**

Finance - Professor Anderson has a daughter who is 3 years old. In 15 years she ...

Finance - Professor Anderson has a daughter who is 3 years old. In 15 years she ...

saving - Saving what? ?? whatwere the Classical views about saving.

math - A. John is now 10 years older than Marcus. Three times John's age 5 years...

econ--HELP!! - QUESTION Consider an economy described by the following equations...

macro - I need help with this question and am a student here. Can you PLEASE ...

Macroeconomics - 2. Assume that GDP (Y) is 5,000. Consumption (C) is given by ...

Macroeconomics - Suppose GDP is $800 billion, taxes are $150 billion, private ...

economices - suppose the government borrows $20 billion more next year. what ...

Finance - You plan to saving 6,400 per year, beginning immediately. Making 4 ...