A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,617.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 8.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years) The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.) Answer Format: Currency: Round to: 2 decimal places. After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 23.00 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 12.12% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $2,081.00. Once retired, you plan on moving your investment to a money market fund that will pay 5.40% APR with monthly compounding. As a young retiree, you believe you will live for 31.00 more years and will make monthly withdrawals of $9,314.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!!!) To meet your retirement needs, what quarterly payment should you make? Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here... A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,617.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 8.00% per year. Tuition payments are at the beginning of the year and college will take 4 years for each girl. (Sam's first tuition payment will be in exactly 16 years) The professor has no illusion that the state lottery funded scholarship will still be around for his girls, so how much does he need to deposit each year in this mutual fund to successfully put each daughter through college. (ASSUME that the money stays invested during college and the professor will make his last deposit in the account when Sam, the OLDEST daughter, starts college.) Answer Format: Currency: Round to: 2 decimal places. After graduating from college with a bachelor of business administration, you begin an ambitious plan to retire in 23.00 years. To build up your retirement fund, you will make quarterly payments into a mutual fund that on average will pay 12.12% APR compounded quarterly. To get you started, a relative gives you a graduation gift of $2,081.00. Once retired, you plan on moving your investment to a money market fund that will pay 5.40% APR with monthly compounding. As a young retiree, you believe you will live for 31.00 more years and will make monthly withdrawals of $9,314.00. (YOUR WITHDRAWALS ARE AT THE BEGINNING OF THE MONTH!!!!) To meet your retirement needs, what quarterly payment should you make? Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here
