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Solve problems with finance calculator please 11. Tom and Erin just had their first child, Tommie. They want to save for their child's college education.
Solve problems with finance calculator please
11. Tom and Erin just had their first child, Tommie. They want to save for their child's college education. They believe that tuition per year when Tommie starts college will be $27,500 per year for 4 years. If their investment account earns 10%, how much money will Tom and Erin need in the account when Tommie turns 18 ? A. $63,235.81 B. $75,131.48 C. $87,171.30 D. $127,627.50 E. None of the other answers 12. Referring back to question \#11, how much should Tom and Erin save each year to reach their goal assuming they have no money in savings now? A. $1,502.44 B. $1,911.69 C. $2,502.71 D. $8,275.04 E. None of the other Answers 13. Ben has been offered an investment that will pay him $1,000 per year forever. Ben's required interest rate is 5%. What is the most that Ben should pay for that investment? A. $20,000 B. $33,333 C. $50,000 D. $100,000 E. None of the other Answers 14. Brennan has been offered an investment that will pay him $2,500 per year forever, and his required interest rate is 4%. The price for this investment offered to Brennan is $65,000. Should Brennan buy this investment? A. Yes B. No 15. Darrell won a lottery that pays him $75,000 per year for the next 50 years. Darrell wants his money now, and not wait 50 years to get it all. Someone has offered Darrell $1,000,000 for his winnings today. For Darrell to accept this offer, his required interest rate must be? A. 7.3% B. 6.0% C. 9.8% D. 12.3% E. None of the other AnswersStep by Step Solution
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