Suppose that you want to enter a three-year executive MBA program in 10 years from now.

(a) [7 points] You anticipate that the annual costs to attend the program are $30,000 per year. The annual costs will be paid at the beginning of each year from Year 11 to Year 13. How much will you need to have in your account to cover the entire costs when you enter the program on the first day of Year 11? Assume that your account will pay 5 % annual interest rates during the period that you attend the program.

(b) [6 points] Suppose that you have $50,000 to invest today. What annual rate of return must your investment yield to cover the entire costs of your executive MBA education? (Hint: I am asking what annual return you need to earn to have the amount of money you computed in (a) at the end of year 10.)

(c) [7 points] Suppose that you have no money to invest today but instead you plan to make an equal amount of investment at the end of each year for 10 years. If you expect a 7% annual rate of return for your investments, how much should you invest each year to cover the entire costs of your executive MBA education?