Question: You wish to get a Surface when you enter your first university degree in 2 years. You have about $2,000 today in your saving account

You wish to get a Surface when you enter your first university degree in 2 years. You have about $2,000 today in your saving account but the Surface costs $4,500. Assume the price stays the same. If you can earn 2.5% per annum, how much do you have to invest (today) to get the Surface in 2 years? If your parents are happy to subsidize $500 (today), how much do you need to invest today? a. You need to deposit $2,398.75 into your saving account today but only $1,898.75 with subsidy from parents. b. You need to deposit $2,400 into your saving account today but only $1,500 with subsidy from parents. c. You need to deposit $2,500 into your saving account today but only $2,000 with subsidy from parents. d. You need to deposit $2,283.17 into your saving account today but only $1,783.16 with subsidy from parents.

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!

1. Which of the following is not correct? A) Payback period is the amount of time required for an investment to generate cash flows that recover its net present value. B) Based on the IRR rule, an...

I need the answers or instructions on how to get the answers for all of problem three and the unfinished part of problem 4. This class is financial modeling, must use the formulas by tagging them to...

(Questions from Lecture and Article) - Discussion Board Activity I need to read the following Lecture Note and the ?Wall Street Journal? articles that I uploaded, and writeanswers for theDiscussion...

The Adora and Jorge Tun Case A CASH FLOW AND EDUCATION PLANNING CASE Adora and Jorge were married seven years ago when Jorge was thirty-five years old. He met Adora, who was also thirty-five years of...

Answer question 13 only. Thanks. ' 66 Personal Financial Planning: Cases & Applications Textbook 10th Edition 2017-2018 Benjamin and Sarah Redding have great aspirations for their future. They have...

IfyouhaveplayedaSimulationcalledProBankerIneedhelpansweringthesequestionsassoonaspossible from the pro bankerassignment attachment..please use spreadsheet and players manual for reference. Need...

1. 1. Heyerdahl: Did you find Heyerdahl's essay convincing? Why or why not? What rhetorical techniques does he use to attempt to persund the reader of his point of view that man is killing the ocean?...

Finance Case Study Benajmin and Sarah Redding need help with a couple questions. Thank you! If someone could help me out with questions 5-10 that would be greatly appreciated. I am beyond confused....

I need help to answer these questions below that are based on the case "Larry Puglia and the T. Rowe Price Blue Chip Growth Fund" 1. How well has the Blue Chip Growth Fund performed in recent years?...

\$ 8 / 6 / 2023 \$ PRESENT VALUE Purpose: To illustrate the idea of discounted present value with computations of the value of payments to be received in the future at different rates of interest....

Suppose that bread and housing must be paid for in three ways: money, ration coupons, and time spent waiting. To get, for example, a loaf of bread one must pay $10, hand over 3 ration coupons, and...

Nichols Inc. reported the following amounts on its balance sheet at the end of 2009 and 2008 for equity: Required: Assume that Nichols did not retire any stock during 2009, it reported $94,000 of net...

What are the main advantages and disadvantages of organizing a firm as a corporation? P 1 - 4 ( book / static ) Question 0 / 1 pt ( Select all the choices that apply. ) P 1 - 6 ( similar to ) A ....

Which of the following approaches views job satisfaction as one of the most important outcomes of job design? Question 3 6 options: a ) motivational approach b ) scientific management approach c )...

Why didn't many students stop by the booth at the career fair? List 3 key reasons that can be determined based upon information provided in the case. Joseph Bloom was confused and disappointed. As IT...

What changes would you suggest to the recruitment and selection processes for dough masters? Why? Pizza Barn provides upscale takeout pizzas and has locations in major cities all across Canada....

Based upon the 3 reasons you have selected, what might Joseph do differently to address each issue if the company were to attend a career fair again? Joseph Bloom was confused and disappointed. As IT...