Determining Amount of Money to Save
Not what you're looking for?
Your younger sister will start college in five years. She has just informed your parents that she wants to go to Harvard University, which will cost $18,000 per year for four years (cost assumed to come at the end of each year). Your parents will start saving an equal amount every year for next four years to pay for her tuition. How much should your parents start saving each year for the next four years to have the necessary funds for her education? Use 10 percent as the appropriate interest rate throughout this problem.
Purchase this Solution
Solution Summary
This solution provides assistance in determining the amount of money should be saved each year in order to accumulate the necessary funds for education.
Solution Preview
The present value of the four-year tuition is calculated by:
Payment = 18,000
N = 4
Rate = ...
Purchase this Solution
Free BrainMass Quizzes
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
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.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce