HULHUICULE LUMPUR Return to Your parents have accumulated a $150,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $24,000 to help her get started, and they have decided to take year-end vacations costing $9,000 per year for the next four years. Use 8 percent as the appropriate interest rate throughout this problem. Use Appendix A and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. How much money will your parents have at the end of four years to help you with graduate school, which you will start then? (Round your final answer to 2 decimal places.) Answer is complete and correct. Funds available for graduate school 130,866.60 b. You plan to work on a master's and perhaps a PhD. If graduate school costs $25,620 per year, approximately how long will you be able to stay in school based on these funds? (Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. Number of years 7.28 x Appendix A Future value of St. FV FV=PV1+1 Percent 5% Period 9% 1 1090 1.070 2 3 4 1.145 1.225 1.311 1.403 1.OBO 1.165 1.260 1 360 1.469 1.587 1.714 1.851 5 6 1.501 7 1.999 9 10 1.010 1.020 1.030 1.041 1.051 1.062 1,072 1.083 1,094 1.105 1.116 1.127 1.138 1.149 1.161 1.173 1.184 1.196 1.200 1.220 1.282 1.348 11 1.020 1.040 1.061 1082 1.104 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1319 1.340 1.373 1.400 1.428 1.457 1.486 1.641 1.811 2.208 2.692 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.605 1.653 1.702 1.754 1.806 2.094 2.427 3.262 4.384 12 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 1.873 1.948 2.026 2.107 2.191 2.666 3.243 4.801 7.107 6% 1.050 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2012 2.133 2.261 2.397 2540 2693 2854 3.026 3.207 4.292 5.743 10.286 18.420 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.183 2.292 2.407 2.527 2.653 3.386 4.322 7.040 11.467 10% 1.100 1.210 1,331 1.464 1.611 1.772 1.949 2.144 2.358 2594 2.853 3.138 3.452 3.797 4.177 4.595 5.054 5560 6. 116 1.188 1295 1.412 1.539 1.677 1.828 1.993 2.172 2.367 2.580 2.813 3.066 3.342 3.642 3.970 4.328 4.717 5.142 5.604 8.623 13.268 31.409 74 358 1.606 1.718 1.838 1.967 2.105 2.252 2.410 2.579 2.759 2.952 3.159 3.380 3.617 3.870 5.427 7.612 14.974 29.457 13 1.110 1.232 1.368 1.518 1.685 1.870 2.076 2.305 2.558 2.839 3.152 3.498 3.883 4.310 4.785 5.311 5.895 6.544 7.263 8.062 13.585 22.892 65.001 184.57 14 15 2.159 2.332 2.518 2.720 2.937 3.172 3.426 3.700 3.996 4.316 4.661 6.848 10.063 21.725 46.902 16 17 18 19 20 25 30 40 6.727 10835 17.449 45.259 117.39 50 1.645 TT Appendix D Present value of an annuity of $1. PVA PV, A Parce 101 Perted 21 1 2 3 0935 1.800 2.624 0893 1.690 2.402 3.037 3.605 5 6 7 8 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 0.990 1.970 2941 3.902 4853 5.795 6.728 7,652 8.566 9.471 10368 11.255 12.134 13 004 13.865 14.718 15.562 16.398 17.226 18.046 22.023 25.80B 32835 39.196 9 10 11 12 13 14 15 16 17 18 19 20 25 30 10 50 0980 1.942 2.884 3 BOB 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10 575 11349 12.106 12.849 13.578 14292 14992 15,678 16.351 19.523 22.396 27.355 31.424 0.971 1.913 2829 3.717 4.580 5417 6230 7,020 7.785 8.530 9.253 9.954 10.635 11.296 11.938 12561 13.166 13.754 14.324 14.877 17413 19 600 23.115 25.730 0.962 1.886 2.775 3630 4452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10563 11.118 11.652 12.166 12.659 13.134 13.590 15.622 17.292 19.793 21.482 0952 1859 2.723 3.546 4.329 5.076 5.786 6.463 7.100 7.722 8306 8.863 9394 9.899 10.380 10.8.38 11.274 11.690 12.085 12.462 14.094 15.372 17.159 18.256 0.917 1.759 2531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 8.313 4.100 4767 5.389 5.971 6.515 7.024 7.490 7.943 8.358 8.745 9.108 9447 9.763 10 059 10.336 10 594 11.654 12.409 13.332 13 801 0926 1.783 2.577 3.312 3.993 4623 5.206 5.747 6.247 6.710 7.139 7536 7.904 8.244 3.559 8.851 9.122 9.372 9.604 9.818 10.675 11.258 11.925 12233 0.900 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7824 3.022 8.201 8.365 8.514 9.077 8.384 8.853 9.295 9.712 10.106 10.477 1012 11.158 11.470 12.703 13.765 15.046 15.762 0.901 1.713 2.444 3.102 3.696 4231 4.712 5.146 5.537 5889 6202 6.492 6.750 6.982 7.191 7.379 7.549 7.702 7.839 7.953 8.422 8.694 8.951 9042 4564 4.968 5.328 5.650 5938 6.194 6.424 6628 6811 6.974 7.120 7.250 7.366 7.469 7843 8.055 8.244 8304 8544 8.756 8.950 9.120 9.823 10.274 10.757 10.962 9.779 9.915 Copyright 2019 MeinwHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education D E TI
