You have three lovely children: Xander is 12 and just finished the sixth grade, Yander is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have three lovely children: Xander is 12 and just finished the sixth grade, Yander is 9 and just finished the third grade, and little Zander is 6 and is just finishing kindergarten. You wish to invest enough money each year for each child to pay for their university education. You want them to go to the University of their own choosing which you predict will be La Salle University! La Salle's current tuition is $30,000 with room and board being another $12,000. You also calculate that books and other expenses will add up to $8,000 per year. The Wall Street Journal recently predicted that tuition room and board would rise at an average rate of 5 percent per year over the next 16 years. You believe that you can earn 8 percent per year on your investments. How much must you contribute each year for each child? (for example you have 6 years of investing before Xander goes to college) In calculating the amounts assume you want to have all you need for each child as they enter the University and that you meet all costs for the academic year at the beginning of the year. You have three lovely children: Xander is 12 and just finished the sixth grade, Yander is 9 and just finished the third grade, and little Zander is 6 and is just finishing kindergarten. You wish to invest enough money each year for each child to pay for their university education. You want them to go to the University of their own choosing which you predict will be La Salle University! La Salle's current tuition is $30,000 with room and board being another $12,000. You also calculate that books and other expenses will add up to $8,000 per year. The Wall Street Journal recently predicted that tuition room and board would rise at an average rate of 5 percent per year over the next 16 years. You believe that you can earn 8 percent per year on your investments. How much must you contribute each year for each child? (for example you have 6 years of investing before Xander goes to college) In calculating the amounts assume you want to have all you need for each child as they enter the University and that you meet all costs for the academic year at the beginning of the year.
Expert Answer:
Answer rating: 100% (QA)
D Zander Age 12 9 6 4 Years left till entering the college 6 9 12 ... View the full answer
Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
Posted Date:
Students also viewed these accounting questions
-
The heart pumps blood at an average rate of 5 L/min. The gauge pressure on the venous (intake) side is 0 mm Hg and that on the arterial (discharge) side is 100 mm Hg. Energy is supplied to the heart...
-
The heart pumps blood at an average rate of 5 L/min. The gauge pressure on the venous (intake) side is 0 mm Hg and that on the arterial (discharge) side is 100 mm Hg. Energy is supplied to the heart...
-
Customers arrive at Valdezs Real Estate at an average rate of one per hour. Arrivals can be assumed to follow the Poisson distribution. Juan Valdez, the agent, estimates that he spends an average of...
-
The Louisiana Grill The Louisiana Grill (TLG) is a restaurant in Toronto. TLG is a regional restaurant created and operated by Alex Ven- tresca, a former football player from New Orleans. The company...
-
Describe the qualitative factors that Miko should consider before accepting the special order described in Exercise 6-7A. In Exercise 6-7A, Miko Company manufactures a personal computer designed for...
-
Culture and Mental Illness A recent study examining the link between schizophrenia and culture interviewed 60 people who had been diagnosed with schizophrenia and who heard voices in their heads. The...
-
Because there is no discernible relationship between the absolute amount of differences (i.e., audited value v. recorded book value) and recorded book value for 50 preliminary sample items, an...
-
Carlsville Company, which began operations in 2013, invests its idle cash in trading securities. The following transactions are from its short-term investments in its trading securities. 2013 Jan. 20...
-
Use the following data to calculate the requested ratios for Accra Starlite Enterprises. Briefly analyse each answer. Assets R'000 Liabilities and Equity R'000 Cash 380 Accounts payable Accounts...
-
Siu is considering giving her son stock in Ace Corporation or Gold Corporation. Each has a current FMV of $500,000, and each has the same estimated future appreciation rate. Sius basis in the Ace...
-
What is the formula for kinetic and potential energies?
-
Lauprechta Incorporated has the following employees on payroll: Employees Semimonthly Payroll Number of Dependents from Form W-4 Marital Status Naila $ 6,000 3 Married Wilfred $ 5,300 2 Married Byron...
-
The kids department has an opening inventory of $275,000 at retail with a markup of 48.7%. The new purchases season-to-date amounted to $300,000 at retail with a 50.4% mark up. Find the cumulative...
-
White Lights Co. uses the total cost concept of applying the cost-plus method to product pricing. The costs of producing and selling 6,000 units are as follows: Line Item Description Amount Fixed...
-
Satriale's meats had operating profits of $100,000, taxes of $17,000, interest expense of $34,000 and preferred dividends of $5,000. What was the store's net profits after taxes?
-
On September 1, 2021, Eva Co., issued $168 million of its 10% bonds at face value. The bonds are dated June 1, 2021, and mature on May 30, 2031. Interest is payable semiannually on June 1 and...
-
John is a junior software engineer and he is a new "associate member" of a local professional society. However, due to his working hours, he is quite reluctant to participate in Continue Professional...
-
Explain five different cases of income exempt from tax with clear examples.
-
In general, what are healthy signs in the cash flow statement?
-
What is the general focus of management of short-term obligations?
-
Why is it important for the CPA to evaluate the organization based on the going concern GAAP?
-
The procedure in Exercise 10.46 also calculates the chi square test for independence. Do Exercise 10.40 using the computer. Data From Exercise 10.46 Data From Exercise 10.40 10.46 A chi square test...
-
A chi square test is easily implemented on a computer. With the counts from Example 8 in columns 1-4, the MINITAB commands produce the output Expected counts are printed below observed counts Repeat...
-
With reference to Exercise 10.48, test the null hypothesis \(p=0.20\) versus the alternative hypothesis \(p Data From Exercise 10.48 10.48 In a sample of 100 ceramic pistons made for an ex-...
Study smarter with the SolutionInn App