Problemkeith stone has 10-year old daughter kate who will, Ask an Expert

Finance

Problem:

Keith Stone has 10-year old daughter, Kate, who will be entering college in 8 years. Keith estimate college costs to be$20,000, $22,000, $25,000 and $28,000 payable at the beginning of each of Kate's four year in college (Kate will begin college at the beginning of year 8. He has $5,000 in his account and intends to leave it there until the beginning of the year 8.

a. How much more must Keith save each Year (assume end of the year payments) for each of the next 7 years to have enough saving to pay for his daughter? Assume Keith can earn 9% on his savings.

Explain your answer

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91145639

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Assume now that you are an active investor and that your

Assume now that you are an active investor and that your research suggests that an investment in Disney will yield 12.5% a year for the next 5 years. Based upon the expected return of 9.95%, you would ¤Buy the stock ¤Sel ...

Noel and noelle are thriving young professionals noel earns

Noel and Noelle are thriving young professionals. Noel earns $75,000 as a financial planner and Noelle earns $85,000 as an occupational therapist. They have no children. Both Noel and Noelle are covered by an employer sp ...

Tactical operational exercises incorporate making

Tactical operational exercises incorporate making resolutions in a model of business management. What aspect does tactical operations NOT cover?

Question - a us importer has arranged to purchase goods

Question - A US importer has arranged to purchase goods costing 157,895 Yuan from a Chinese exporter, and will sell those goods for a guaranteed price of $1,325,000. The goods will be delivered immediately, but the impor ...

Xyz stock price and dividend history are as

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 122 $ 5 2011 132 $ 5 2012 $ 110 ...

What are the steps to solve this question this is a finance

What are the steps to solve this question? This is a Finance question. This is a practice question. I actually already know the answer, I just need to know the steps to get to the answer (72.60). What if Timco's dividend ...

The conversion price of a 100 par convertible preferred

The conversion price of a $100 par convertible preferred stock is $25. If this convertible has a conversion value of $64 per share, What is the common stock price?

Your accounts receivable clerk m adams to whom you pay a

Your accounts receivable clerk, M Adams, to whom you pay a salary of $2,175 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $118,900 as shown in the ledger ...

You would like to retire in 39 years the expected rate of

You would like to retire in 39 years. The expected rate of inflation is 01.00% per year. You currently have a standard of living that requires $7,442 of monthly expenses. Assuming you want to maintain the same standard o ...

Corn in has an odd dividend policy the company has just

Corn, In., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert