Question: Annette has two children whose names are Max and Alice. Max will enter the college in next three years. The tuition fee for Max is

Annette has two children whose names are Max and Alice. Max will enter the college in next three years. The tuition fee for Max is 75,000 per semester which will be paid at the beginning of each semester for four years. Alice will enter the college in the next four years. The tuition fee for Alice is 80,000 per semester which will be paid at the beginning of each semester for six years. If the interest rate is 4.5% annually, how much Annette has to deposit today in order to pay all her children's tuition fee in the future?

Step by Step Solution

★★★★★

3.39 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Date Page Lel us assume thut theru are 2 semester is euch ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

CASE HI-HO, YO-YO, INC. It was a little past 9:00 on a Monday morning when Jeff Baker walked into your office with a box of donuts. "I've been talking with Anne about a problem we have with...

If you save $25 at the beginning of each month, and interest is 4% compounded quarterly, how much will you accumulate in 30 years?

At the beginning of each year, LED Lighting, Ltd.s Accounting Department must find the point at which projected sales revenue will equal total budgeted variable and fixed costs. The company produces...

If $1000 is deposited at the beginning of each quarter into an account that earns 8%, compounded quarterly, how long until the account contains $31,000? (a) State whether the problem relates to an...

Your company needs to purchase a new track hoe and has narrowed the selection to two pieces of equipment. The first track hoe costs $100,000 and has an hourly operation cost of $31.00 and a $35,000...

Determine the incremental rate of return for Problem 8. Which track hoe should your company choose? In problem 8, your company needs to purchase a new track hoe and has narrowed the selection to two...

Upstate Bank is offering long-term certificates of deposit with a face value of $100,000 (future value). Bank customers can buy these CDs today for $67,000 and will receive the $100,000 in fifteen...

On 2 January 20x4, P Co purchased from X Co, a controlling interest of 90% interest in Sapphire Co, a company that has an on-going research and development (R&D) project. On 2 January 20x4, P Co...

Is Bohm most likely correct regarding Comment A about the $$10$ million investment and Comment B about using the after-tax cost of debt? A. No for both comments. B. Yes for both comments. C. No for...

Alan inherited $100,000 with the stipulation that he invest it to financially benefit his family. Alan and his wife Alice decided they would invest the inheritance to help them accomplish two...

One end of a rod, enclosed in a thermally insulating sheath, is kept at a temperature T1 while the other, at T2. The rod is composed of two sections whose lengths are l1 and l2 and heat conductivity...

The following message was written by the marketing manager of an online retailer of baby-related products in the hope of becoming a retail outlet for a premiere brand of strollers and high chairs. As...

Why Don't We Diffract? (a) Calculate the de Broglie wavelength of a typical person walking through a doorway. Make reasonable approximations for the necessary quantities. (b) Will the person in part...

Acconding to the AICPA Code of Professional ( Conduct , which of the following actions will impair independence? A . Preparing client financial statementa based on information in a trial balance B ....

It turns out that the depth in the ocean to which airborne electromagnetic signals can be detected grows with the wavelength. Therefore, the military got the idea of using very long wavelengths...

Provide an example a law that exists in the U.S. that you believe also incorporates a moral principle. Explain your reasoning.

The full-adder in the figure given below is tested under all input conditions with the input waveforms shown. From your observation of the and Cout waveforms, is it operating properly, and if not,...

Which is shorter: a 95% z -interval or b 95% t -interval for if we know that =s?

Some hydrocarbon fuels have sulfur present and contribute to air pollution. When this solid sulfur is burned in the presence of oxygen, the noxious, toxic gas sulfur dioxide results. If there is 0.50...

The root word for joint is called: Multiple choice question. athero-. osteo-. arthr-. burs

3. Annette has two children whose names are Max and Alice. Max will enter the college in next three years. The tuition fee for Max is 75,000 per semester which will be paid at the beginning of each...

14) Mary has two children whose names are Danny and Darren. Danny will enter the college in next year. The tuition fee for Danny is THB70,000 per semester which will be paid at the beginning of each...

Federal Tax Final Exam 4.30.2013 1.) Liz, who is single, lives in a single family home and owns a second single family home that she rented for the entire year at a fair rental rate. Liz had the...

I would like to know if someone can assist with inputting the formulas into the Excel spreadsheets..... Answers are provided, however, the formulas were omitted. Week 9 Chapter 21: Problems 3(a-e),...

You will be asked to select a company that is publicly traded. You must research and secure the SEC 10-K Annual Report for the most recent year. This is often available at the company web site. Look...

i need a tutor to help me finish the financial planning assignment. 1202AFE Financial Planning 1 Semester 2, 2016 File Note - Statement of Advice Client's name: Date of contact: Re: Liam Sem 17...