You plan to send your first born child to DePaul for a 4-year degree with 4...
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You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 25 years in the amount of $75,000 and grow by 10% per year. Assuming a discount rate of 4%. You start saving in one year from now a fixed amount for 11 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $38,000. You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 25 years in the amount of $75,000 and grow by 10% per year. Assuming a discount rate of 4%. You start saving in one year from now a fixed amount for 11 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $38,000.
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Answer rating: 100% (QA)
SOLUTION PV 75000 114 1 114 004 75000 113 1 113 004 75000 112 1 112 004 75000 11 1 11 004 PV 56798325 FV PV 11PMT FV 56798325 11PMT PMT FV PV 11 PMT 56798325 0 11 PMT 5163484 PMT 51635 Therefore the a... View the full answer
Related Book For
Quantitative Investment Analysis
ISBN: 978-1119104223
3rd edition
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
Posted Date:
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