Question: Nate is saving for his son's college. He expects to need to need 7 annual payments of $ 4 7 , 0 0 0 each,

Nate is saving for his son's college. He expects to need to need 7 annual payments of $47,000 each, with the first annual payment occurring 12 years from today. Ideally, Nate would like to fully fund the entire bill with a single deposit today. If the discount rate is 9%, how much should he deposit? Round your answer to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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!

Q:

Tiger Biz stock will pay dividends of $1.92 one year from today and $2.97 one year after that. Then, in year three and continuing every year thereafter, Tiger Biz's annual dividend will be a constant...

Q:

Eliah is planning for his son's college. He expects to need to need 7 annual payments of $31,000 each, with the first annual payment occurring 13 years from today. If Eliah wants to fully fund the...

Q:

0 point Eliah is planning for his son's college. He expects to need to need 7 annual payments of $31,000 each, with the first annual payment occurring 10 years from today. If Eliah wants to fully...

Q:

4 points Nathaniel is saving for his son's college. He expects to need to need 4 annual payments of $31,000 each, with the first annual payment occurring 12 years from today. Ideally, Nathaniel would...

Q:

A 7\% coupon bond has a par value of $1,000 and a yield-to-maturity of 4.5%. You purchase the bond when it has exactly 7 years remaining until maturity. You hold the bond for 6 months, collect the...

Q:

Eliah is planning for his son's college. He expects to need to need 6 annual payments of $48,000 each, with the first annual payment occurring 13 years from today. If Eliah wants to fully fund the...

Q:

Louise has been saving to pay for her daughter June's college education. June just turned 10 at (t=0), and she will be entering college 8 years from now. College tuition and expenses at State U. are...

Q:

louise has been saving to pay for her dayghter junes college education. june just turned 10 at (t=0) and she will be entering college 8 years from now. college tuition and expenses at state u. are...

Q:

Louise has been saving to pay for her daughter June's college education. June just turned 10 (1-0), and he will be entering college 8 years from now. College tuition and expenses at State U. are...

Q:

Question 12 (2.5 points) Louise has been saving to pay for her daughter June's college education. June just turned 10 at (t = 0), and she will be entering college 8 years from now. College tuition...

Q:

Use the data given in PA13- 1 for Pinnacle Plus. Required: 1. Compute the gross profit percentage in the current and previous years. Round the percentages to one decimal place. Are the current year...

Q:

Suppose the interest rate is 10%. If $100 is invested at this rate today, how much will it be worth after one year? After two years? After five years? What is the value today of $100 paid one year...

Q:

5 0 . Jerry, age 7 2 , is retired. Jerry's primary investment objective is generating income. Based on the results of Jerry's risk tolerance questionnaire, he is a conservative investor. Generally,...

Q:

8:37 * N. 80% i ... OBJECTIVES: Create relationships Create a Pivot Table from Related Tables Create a PivotChart Modify the PivotChart The major section in this chapter :ontinuation is: Data...

Q:

2. How economists distinguish between nominal GDP and real GDP.

Q:

3. Identify those forces over which you have some influence or control.

Q:

1. Based on the limited information, what advantages of the change approved by Paul Lindford can you identify?