You have just started your undergraduate study and expect to graduate in four years. You are planning to take a part-time job that will generate $1800 per month in the coming 4 years (end of month payments). In addition, your parents will give you $1700 at the beginning of each month till your graduation (beginning of month payments). The school tuition fees are covered by your parents (you don’t need to worry about the school fees). You expect that you need to spend $2,200 per month while studying (at the end of every month). After graduation, you plan to open your own business. Assume a 6% discount rate compounded semi-annually. 

1. What is the PV of all the money you expect to receive in the coming 4 years? 

2. What is the PV of your expenses during these four years?

3. How much money you will have saved by the end of year four (needed to start your business)?

Answer rating: 100% (QA)

4 Here s cound sate coumfounded Semi Annmally find Discount yate compounded Mo... View the full answer