i have need of these 2 questions Answer (13) John and Barbara Roberts are starting to save for their daughters college education. a. Assume that todays date is September 1, 2002. b. College costs are currently $10,000 a year and are expected to increase at a rate equal to 6 percent per year for the foreseeable future. All college payments are due at the beginning of the year. (So for example, college will cost $10,600 for the year beginning September 1, 2003). c. Their daughter will enter college 15 years from now (September 1, 2017). She will be enrolled for four years. Therefore the Roberts will need to make four tuition payments. The first payment will be made on September 1, 2017, the final payment will be made on September 1, 2020. Notice that because of rising tuition costs, the tuition payments will increase each year. d. The Roberts would also like to give their daughter a lump-sum payment of $50,000 on September 1, 2021, in order to help with a down payment on a home, or to assist with graduate school tuition. e. The Roberts currently have $10,000 in their college account. They anticipate making 15 equal contributions to the account at the end of each of the next 15 years. (The first contribution would be made on September 1, 2003, the final contribution will be made on September 1, 2017). f. All current and future investments are assumed to earn an 8 percent return. (Ignore taxes.) How much should the Roberts contribute each year in order to reach their goal? (14) Joe and June Green are planning for their childrens college education. Joe would like his kids to attend his alma mater where tuition is currently $25,000 per year. Tuition costs are expected to increase by 5 percent each year. Their children, David and Daniel, just turned 2 and 3 years old today, September 1, 2002. They are expected to begin college the year in which they turn 18 years old and each will complete his schooling in four years. College tuition must be paid at the beginning of each school year. Grandma Green invested $10,000 in a mutual fund the day each child was born. This was to begin the boys college fund (a combined fund for both children). The investment has earned and is expected to continue to earn 12 percent per year. Joe and June will now begin adding to this fund every August 31st (beginning with August 31, 2003) to ensure that there is enough money to send the kids to college. How much money must Joe and June put into the college fund each of the next 15 years if their goal is to have all of the money in the investment account by the time Daniel (the oldest son) begins college? (15) Jerry and Donald are two brothers with the same birthday. Today is Jerrys 30th birthday and Donalds 25th birthday. Donald has been saving for retirement ever since his 20th birthday, when he started his retirement account with a $10,000 contribution. Every year since, Donald has contributed $5,000 to the account on his birthday. He plans to make the 40th, and final, $5,000 contribution on his 60th birthday, after which he plans to retire. In other words, by the time Donald has made all of his contributions he will have made one contribution of $10,000 followed by 40 annual contributions of $5,000. Jerry plans to retire on the same day (which will be his 65th birthday); however, until now, he has saved nothing for retirement. Jerrys plan is to start contributing a fixed amount each year on his birthday; the first contribution will occur today. Jerrys 36th, and final, contribution will occur on his 65th birthday. Jerrys goal is to have the same amount when he retires at age 65 that Donald will have at age 60. Assume that both accounts have an expected annual return of 12 percent. How much does Jerry need to contribute each year in order to meet his goal? (15) Jerry and Donald are two brothers with the same birthday. Today is Jerrys 30th birthday and Donalds 25th birthday. Donald has been saving for retirement ever since his 20th birthday, when he started his retirement account with a $10,000 contribution. Every year since, Donald has contributed $5,000 to the account on his birthday. He plans to make the 40th, and final, $5,000 contribution on his 60th birthday, after which he plans to retire. In other words, by the time Donald has made all of his contributions he will have made one contribution of $10,000 followed by 40 annual contributions of $5,000. Jerry plans to retire on the same day (which will be his 65th birthday); however, until now, he has saved nothing for retirement. Jerrys plan is to start contributing a fixed amount each year on his birthday; the first contribution will occur today. Jerrys 36th, and final, contribution will occur on his 65th birthday. Jerrys goal is to have the same amount when he retires at age 65 that Donald will have at age 60. Assume that both accounts have an expected annual return of 12 percent. How much does Jerry need to contribute each year in order to meet his goal? (15) Jerry and Donald are two brothers with the same birthday. Today is Jerrys 30th birthday and Donalds 25th birthday. Donald has been saving for retirement ever since his 20th birthday, when he started his retirement account with a $10,000 contribution. Every year since, Donald has contributed $5,000 to the account on his birthday. He plans to make the 40th, and final, $5,000 contribution on his 60th birthday, after which he plans to retire. In other words, by the time Donald has made all of his contributions he will have made one contribution of $10,000 followed by 40 annual contributions of $5,000. Jerry plans to retire on the same day (which will be his 65th birthday); however, until now, he has saved nothing for retirement. Jerrys plan is to start contributing a fixed amount each year on his birthday; the first contribution will occur today. Jerrys 36th, and final, contribution will occur on his 65th birthday. Jerrys goal is to have the same amount when he retires at age 65 that Donald will have at age 60. Assume that both accounts have an expected annual return of 12 percent. How much does Jerry need to contribute each year in order to meet his goal? (15) Jerry and Donald are two brothers with the same birthday. Today is Jerrys 30th birthday and Donalds 25th birthday. Donald has been saving for retirement ever since his 20th birthday, when he started his retirement account with a $10,000 contribution. Every year since, Donald has contributed $5,000 to the account on his birthday. He plans to make the 40th, and final, $5,000 contribution on his 60th birthday, after which he plans to retire. In other words, by the time Donald has made all of his contributions he will have made one contribution of $10,000 followed by 40 annual contributions of $5,000. Jerry plans to retire on the same day (which will be his 65th birthday); however, until now, he has saved nothing for retirement. Jerrys plan is to start contributing a fixed amount each year on his birthday; the first contribution will occur today. Jerrys 36th, and final, contribution will occur on his 65th birthday. Jerrys goal is to have the same amount when he retires at age 65 that Donald will have at age 60. Assume that both accounts have an expected annual return of 12 percent. How much does Jerry need to contribute each year in order to meet his goal? (15) Jerry and Donald are two brothers with the same birthday. Today is Jerrys 30th birthday and Donalds 25th birthday. Donald has been saving for retirement ever since his 20th birthday, when he started his retirement account with a $10,000 contribution. Every year since, Donald has contributed $5,000 to the account on his birthday. He plans to make the 40th, and final, $5,000 contribution on his 60th birthday, after which he plans to retire. In other words, by the time Donald has made all of his contributions he will have made one contribution of $10,000 followed by 40 annual contributions of $5,000. Jerry plans to retire on the same day (which will be his 65th birthday); however, until now, he has saved nothing for retirement. Jerrys plan is to start contributing a fixed amount each year on his birthday; the first contribution will occur today. Jerrys 36th, and final, contribution will occur on his 65th birthday. Jerrys goal is to have the same amount when he retires at age 65 that Donald will have at age 60. Assume that both accounts have an expected annual return of 12 percent. How much does Jerry need to contribute each year in order to meet his goal? (15) Jerry and Donald are two brothers with the same birthday. Today is Jerrys 30th birthday and Donalds 25th birthday. Donald has been saving for retirement ever since his 20th birthday, when he started his retirement account with a $10,000 contribution. Every year since, Donald has contributed $5,000 to the account on his birthday. He plans to make the 40th, and final, $5,000 contribution on his 60th birthday, after which he plans to retire. In other words, by the time Donald has made all of his contributions he will have made one contribution of $10,000 followed by 40 annual contributions of $5,000. Jerry plans to retire on the same day (which will be his 65th birthday); however, until now, he has saved nothing for retirement. Jerrys plan is to start contributing a fixed amount each year on his birthday; the first contribution will occur today. Jerrys 36th, and final, contribution will occur on his 65th birthday. Jerrys goal is to have the same amount when he retires at age 65 that Donald will have at age 60. Assume that both accounts have an expected annual return of 12 percent. How much does Jerry need to contribute each year in order to meet his goal