You've just turned 20 years old today. You would like to finish your Cal Poly degree,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You've just turned 20 years old today. You would like to finish your Cal Poly degree, then work for a few years, and then start your grad school when you turn 26. To save up enough for your grad school degree you will set aside $12,300 once a year, a total of six identical amounts, deposited into the same bank account. You will set aside the first such amount today. When you turn 26 and start your grad school degree, you will right away withdraw $28,000 to pay for the first year of your grad school tuition. You will then continue withdrawing the same amount of money from the same bank account (which - keep in mind! - keeps earning you interest), once each year. To cover the tuition expenses you will need to make four such money withdrawals. %. (Do not Based on the above, the annual interest rate in this bank account is round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34) Return % You've just turned 20 years old today. You would like to finish your Cal Poly degree, then work for a few years, and then start your grad school when you turn 26. To save up enough for your grad school degree you will set aside $12,300 once a year, a total of six identical amounts, deposited into the same bank account. You will set aside the first such amount today. When you turn 26 and start your grad school degree, you will right away withdraw $28,000 to pay for the first year of your grad school tuition. You will then continue withdrawing the same amount of money from the same bank account (which - keep in mind! - keeps earning you interest), once each year. To cover the tuition expenses you will need to make four such money withdrawals. %. (Do not Based on the above, the annual interest rate in this bank account is round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34) Return %
Expert Answer:
Answer rating: 100% (QA)
To find the annual interest rate in the bank account we can use the future value formula FV PV1 rn w... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Investor A just turned 20 years old and currently has no investments. She plans to invest $5,500 at the end of each year for eight years, beginning in five years. The rate of return on her investment...
-
Adam Wilton turned 20 years old today. His grandfather had established a trust fund that will pay him $80,000 on his next birthday. However, Adam needs money today to start his college education, and...
-
Larry Mattingly turned 20 years old today. His grandfather had established a trust fund that will pay him $120,000 on his next birthday. However, Larry needs money today to start his college...
-
For urban children in India, work opportunities are few. What would you expect to see happen to the urban-rural gap in test scores in high rainfall periods?
-
A 4.0 kg mess kit sliding on a frictionless surface explodes into two 2.0kg parts: 3.0 m/s, due north, and 5.0 m/s, 30o north of east. What is the original speed of the mess kit?
-
A cheetah spots a Thomsons gazelle, its preferred prey, and leaps into action, quickly accelerating to its top speed of 30 m/s, the highest of any land animal. However, a cheetah can maintain this...
-
McGavin Oil Company incurred the following costs during calendar year 2016: Prepare journal entries for the above transactions using the successful efforts method of accounting. February 1 March 2...
-
Interpreting disclosures regarding long-lived assets Exhibit 9.8 presents a partial balance sheet for Hewlett-Packard Company (HP). a creator and manufacturer of computer hardware and software and...
-
ABC Company wants to host an awards dinner and guestrooms at your hotel, they will need dinner and drinks for 150 people and 75 guest rooms for one night. Food will be at $85.00 per person and...
-
Your parents are considering investing in Apple Inc. common stock. They ask you, as an accounting expert, to make an analysis of the company for them. Financial statements of Apple are available...
-
Use descriptive statistics to analyze the data? Use a Two- tail Test to compare the pre-implementation and post implementation period. for depression sx. depression diagnosis and depression treatment...
-
Determining the limitations of the constitutional doctrine of due process has been a difficult issue to resolve. Use the Internet to research specific California cases in which a court considered...
-
Visit the California State Bar Fee Arbitration Department website at www.calbar.ca.gov/Attorneys/MemberServices/FeeArbitration.aspx and familiarize yourself with the California fee arbitration...
-
Recall that before drafting pleadings, multiple prefiling requirements must be considered. Review the California Code of Civil Procedure Section 372, which governs ones capacity to sue....
-
The Federal Rules of Civil Procedure have specific requirements for how motions are to be drafted. View the following website: www.casd.uscourts.gov. At the home page, go to Attorney...
-
Centnet Pty. Ltd. is a public electronic funds transfer network that operates switches in the capital cities of all states in Australia (see case 12-1). Because much of the data transmitted...
-
PT ABC has inventory purchases and sales data as below for June 2021 Inventories June 1, 2021 100 units 4 dollars per unit purchase June 8 2021 300 units 5 dollars per unit June 10 2021 200 units 5...
-
Using (1) or (2), find L(f) if f(t) if equals: t cos 4t
-
Berkman Investment Bank has the following bond deals under way: Determine the net proceeds of each bond and the cost of the bonds for each company in terms of yield. The bond yield in the table is...
-
Greys Pharmaceuticals has a new project that will require funding of $4 million. The company has decided to pursue an all-debt scenario. Greys has made an agreement with four lenders for the needed...
-
Determine the bank discount rate of the August 30 Treasury bill if it is currently selling for $9,841.625. What is the bond equivalentyield? Maturity Mar 30 Apr 30 Jun 30 Aug 30 Days to Maturity 28...
-
When it comes to translating the financial statements of entities in highly inflationary countries, which of the following approaches makes more sense and why? a. Remeasure using the temporal method,...
-
Why do currency differences affect foreign exchange reporting?
-
Why do German and French approaches to reporting foreign exchange gains and losses differ from those in the United Kingdom?
Study smarter with the SolutionInn App