Clarise wants to save for her son Marche's graduate school. He will begintschool in 5 years....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Clarise wants to save for her son Marche's graduate school. He will begintschool in 5 years. She believes he will be in school for 2 years. He wants to go to MIT which will cost $64,791 per year. She estimates her investment returns to be 7% per year. She is estimating inflation to be 5% per year. How much does she need to put aside today to fund his graduate school? (use 2 decimal places for your answer). Clarise wants to save for her son Marche's graduate school. He will begintschool in 5 years. She believes he will be in school for 2 years. He wants to go to MIT which will cost $64,791 per year. She estimates her investment returns to be 7% per year. She is estimating inflation to be 5% per year. How much does she need to put aside today to fund his graduate school? (use 2 decimal places for your answer).
Expert Answer:
Answer rating: 100% (QA)
calculate how much Clarise needs to save today Heres the breakd... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Bill and Bob are both 35 years old today. Each wants to begin saving for his retirement. Both plan on contributing a fixed amount each year into brokerage accounts that have annual returns of 10%....
-
The classic iPod is 10.5 millimeters thick. Suppose that the actual thickness T of any particular iPod has a maximum error tolerance that is less than 0.05 millimeter. (a) Write an absolute value...
-
The City of Fram issued 100 bonds at their face value of $6,000 each plus accrued interest on June 1, 2017. The term of the bonds was January 1, 2017 to January 1, 2023, with interest payable...
-
In this chapter, you learned the three conditions that must be met before revenue can be recognized. In any organization, there is always a risk that fictitious revenue may be recorded before it is...
-
What are the different types of schemes associated with complex frauds?
-
Contingencies Presented below are three independent situations. Answer the question at the end of each situation. 1. During 2010, Maverick Inc. became involved in a tax dispute with the IRS....
-
Two identical loudspeakers are driven in phase by a common oscillator at 880 Hz and face each other at a distance of 1.22 m. Locate the points along the line joining the two speakers where relative...
-
Samuel C. Mazilly wrote a personal check that was drawn on Calcasieu- Marine National Bank of Lake Charles, Inc. (CMN Bank). The check was made payable to the order of Lee St. Mary and was delivered...
-
The arms of a Porter governor are 17.8 cm long and are hinged at a distance of 3.8 cm from the axis of the governor. Mass of each ball is 1.15 kg and mass of sleeve is 20 kg. The governor sleeve...
-
Java Programming Please make sure your code is working correctly and I will give you a good review! Thank you very much!!! Key Steps: 1. Create a new class Taxation in a new NetBeans project Taxation...
-
I am choking on all the e-mails and text messages I get every day. On most days, there are over 150. It seems like I am spending half of my waking hours reviewing and responding to those messages. My...
-
A 8.55 eV barrier of width 0.300 nm is in the path of an electron moving with a speed of 1.60 x 106 m/s. What are the chances the electron will penetrate the barrier? Determine the probability of...
-
A vacation resort has both an amusement park and water park facilities for families staying at the resort. The resort sells ticket plans to the families based on which type of park that they would...
-
Change the Pokemon class so that it can store images for Pokemon. First, add an instance variable to the Pokemon class to store an image. Then, add a new Constructor, still keeping the old one. This...
-
QI. (i) How Kelvin and Clausius statement support each other in 2d law of thermodynamics? Precisely explain with suitable reasons? (10) (ii) An ideal monoatomic gas initially at pressure Po and...
-
Parkin Industries, a U.S. company, acquired a wholly-owned subsidiary, located in Italy, at the beginning of the current year, for 200,000. The subsidiary's functional currency is the euro. The...
-
The ABC Corporation placed an asset in service three years ago. The company uses the MACRS method (seven-year life) for tax purposes and the straight-line method (seven-year useful life) for...
-
Consider the investment projects given in Table P7.49. Assume that MARR = 15%. (a) Compute the IRR for each project. (b) On the basis of the IRR criterion, if the three projects are mutually...
-
The data in Table P2.3 are available for two companies, A and B, all stated in millions. (a) Calculate each company's return on equity (ROE) and return on total assets (ROA). (b) Why Company B's ROE...
-
The IT implementation project is bogging down and falling behind schedule. The department heads are complaining that the project cannot help them if it is not implemented in a reasonable time frame....
-
This isnt what I need! objected the admissions officer at Northwest Regional Hospital. Judy sighed, But this is the software you asked us to create for you. I dont care what I said at the time, this...
-
Assume the network diagram shown in Figure 11.19. Megan is responsible for activities A and C. Use the critical chain methodology to resource-level the network. What are two options for redrawing the...
Study smarter with the SolutionInn App