Question: Q1 Based on the information below, what has been the annual growth rate for college tuition over the past twenty years? Current tuition (average): $
| Q1 |
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| Based on the information below, what has been the annual growth rate for college tuition over the past twenty years? |
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| Current tuition (average): | $ 66,004.87 |
| Tuition twenty years ago (average): | $ 19,375.00 |
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| Q2 |
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| Given the annual coupon rate below, what is the holding period return for a twenty-year bond purchased at par (i.e. $1,000) that is held to maturity without any interest being earned on the coupons? |
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| Coupon rate: | 5.60% APR |
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| Q3 |
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| Based on the savings rate provided below, assume you earn interest on a semi-annual basis. What is the present value of ten annual payments of $500.00 (starting next year)? |
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| Savings rate: | 5.82% APR |
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| Q4 |
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| Based on the savings rate provided below, what minimum monthly contribution (starting next month) is necessary to accumulate $1,000,000 by the time you retire in forty years? |
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| Savings rate: | 5.40% APR |
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| Q5 |
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| Assuming the following annual cash flows (see below) and the interest rate given below, how much money will you have upon receiving the last cash flow assuming you have earned interest on an annual basis? |
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| Year 0 (today): | $ 4,750.00 |
| Year 1: | $ 4,000.00 |
| Year 2: | $ 3,250.00 |
| Year 3: | $ 3,000.00 |
| Year 4: | $ 4,750.00 |
| Interest rate: | 7.90% APR |
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