Financial Modelling BFin 400

2. On my 18th birthday, my parents gave me $85,000. After consulting a commercial branch manager, I was advised to put this amount in an account that would yield...on an annual basis. After 10 years I will be able to withdraw $268,980. How much is the annual compounded rate? *

a. 12%

b. 6%

c. 10%

d. 15%

e. None of the above

3. Today at age of 20, You are planning to attend a college, specifically MedSchool. The Medschool program has a duration of 7 years and the tuition fees are of $12,500 fixed at the end of each year. If the compounded annual rate for the 7 years is 7.5%, how much should you deposit today in your account to be able to attend the program? *

a. 275,374.64

b. 87,500.30

c. 350,000.21

d. 66,207.52

e. None of the above