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QUESTION 5 From: Principles of Finance with Excel 3rd ed., Benninga and Mofkadi, 2018,2011, 2006 Mary has just completed her undergraduate degree from Northwestern University

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QUESTION 5 From: Principles of Finance with Excel 3rd ed., Benninga and Mofkadi, 2018,2011, 2006 Mary has just completed her undergraduate degree from Northwestern University ad is already planning to enter an MBA program 4 years from today. The MBA tuition will be $50,000 per year for 2 years, paid at the beginning of each year. In addition, Mary would like to retire 15 years from today and receive a pension of $60,000 every year for 20 years with the first pension payment paid out 15 years from today. Mary can borrow and lend as much as she likes at a rate of 7% compounded annually. In order to fund her expenditures, Mary will save money at the end of years 0-3 and at the end of vears 6 through 14 Calculate the constant annual dollar amount that Mary must save at the end of each of these years to cover all her expenditures (tuition and retirement). Hint: Build a C.F. /Amort. Table and It will be helpful to use either GoalSeek or Solver Borrow/Lend Rate Annual Savings 7.00% Tuition/Yr Pension/Yr 50,000.00 60,000.00

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