Interest Rate to Fund a College Education in 18 Years
Not what you're looking for?
1) You expect your newly born child to attend college in 18 years. You have $12,000 to set aside for that purpose.
You also expect that the total cost of college education to be $100,000 by that time.
Calculate the interest rate at which you have to invest today to achieve your goal. SHOW CALCULATIONS AND WHAT NUMBERS GO INTO THE FORMULA.
2) Highlight Inc. is considering an investment project with the following cash flows:
YEAR Cash Flow
1 $300
2 $400
3 $600
4 $900
If the discount rate is 10% , calculate the present value of these cash flows.
What will be the present value if the discount rate is changed to 15%
SHOW CALCULATIONS AND WHAT NUMBERS GO INTO THE FORMULA.
For both problems, show calculations including intermediate calculations.
Purchase this Solution
Solution Summary
The interest rate to fund a college education in 18 years is determined in the solution.
Solution Preview
1) You expect your newly born child to attend college in 18 years. You have $12,000 to set aside for that purpose.
You also expect that the total cost of college education to be $100,000 by that time.
This is FV of a ...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.