Your parents have accumulated a $170,000 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 $20,000 to help her get started, and they have decided to take year-end vacations costing $8,000 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.) Funds for graduate school b. You plan to work on a master's and perhaps a PhD. If graduate school costs $23,540 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.) Number of years Appendix A Fun Value of LIVE F P Period 252 435 1040 1040 TOG! 10 1020 1.082 1104 1126 1 159 1216 1275 1.262 1338 1.518 1685 1217 1041 051 1062 1072 1083 094 1407 150 140 172 1195 230 267 1.900 2144 2016 2.305 2.550 2.839 1.718 1.828 1967 1423 1 344 2357 2594 2.159 2.133 1426 3.4 L116 1127 1.138 1.149 1161 1173 124 1268 .294 1319 346 173 2 BUXOR 4.310 1513 155 1GOS 5311 5.895 6.544 196 1428 1601 1.796 2012 1665 1986 2.133 2.410 1 732 1980 2.261 2579 1801 20792.397 270 2.13 1948 2292 2693 2.026 2.407 2854 3.30 2527 3517 2191 2.191 2052 1207 1070 2666 3.386 4.292 5.427 3.243 4.322 5743 7.612 4 801 7040 10 286 4 974 710711 457 42029.457 1702 2.720 3.066 .937 3342 3.797 3172 1426 2.970 3.700 4.328 5,054 3.996 4.717 5.560 6115 5.604 6727 6843 8.623 10.35 10.063 13.263 17.49 21725 31 409 4690274.5311779 1062 13:55 220 406 30G 22 16412094 1348 1.811 2.427 148922083752 16452692 734 Appendix A concluded Free of $1 55001 Percent 15 1 7% 204 205 1.120 1.254 1.495 1.369 1602 1.643 1521 1.749 1 346 1.561 1811 2.100 1.277 1.300 1.482 1.689 3.925 2002 2.15 2353 2002 26582853 31004 3.252 3395 3.797 376 4775 2013 2.000 2036 2.700 2.211 25 3.001 3511 3379 4021 2.755 3.278 3.803 4411 5117 2052 2015 4.760 5960 7.451 9313 11 442 14 552 1503 4300 5160 5192 7430 3518 045 4552 4 3.106 3479 4807 5234 55245176 5696 6.777 G 4.33 4 5492 4.887 5535 6.261 5.474 5.254 7.138 6.130 7067 8137 6.856 7.966 9.276 7.690 3024 10:575 1.612 10.197 12.056 9.646 11.523 13.743 17.000 21.231 26.462 29.960 39 116 50950 93.051 132.78188 88 789.00 490 74 700 22 7076 8132 9358 10.751 1 3175 14232 16.367 32.919 5 6212 2 6785 0 7 9 .266 10.748 12.458 14.662 16.777 19.451 40874 5850 378.72 1670.7 9.007 10.539 2330 14426 16.379 19741 23106 50.658 1110 533.87 2.5662 10.147 11.574 1429 15.672 9.673 21214 27.333 62.669 163.37 7 50.38 1.927.4 13590 15.407 18.488 19 244 2216 22.091 26423 2725231941 32.429 38.338 77.388 95.396 1846 237 38 1051,7 1,4598 S 9,100 4 28.422 35 573 44409 SS SI G. 96.735 264.70 307.79 7,5232 7 0,055.0 374 51.186 65.542 86.504 112.06 146.19 190.05 20554 26200 35.119.0 497.929.0 8 Appendia Present at of armity St. Pet e r 0962 0.935 980097 1942 1913 .9529 3 1959 1333 1920 1902 453 4713 50 43994 212 100 5601 5.075 49174767 6.472 6230 500 5.786 55825 389 5.463210971 8566 7.786 7435 6.802 5515 9.471 983 530 8.111 2.722 73507024 10.368 9.787 9253 760 306 307 7 499 105 105759954 34 7943 12.134 11.343 10.635 9.586 9.294 8.853 8.358 13.004 12.106 11.296 10.563 9.999 9.295 8.745 13.865 12.4 11.9381111 10.380 9 712 9.108 14.718 13.578 12 161 162 163 10.106 9.447 15562 14.292 16 12 166 51274 10.477 9753 16.358 14.992 13.754 12.659 11.690 10828 10.059 17.226 15.673 14.324 13.134 2085 11.158 10.336 1046 16.35 1477 13500 12.492 11.470 10.500 22.023 19.522 17413 15 62214094 12 7 11 054 25.80B 22 396 19.600 17.292 15372 13.265 12.409 32.335 27,355 23.115 19.793 17.159 15.046 13.332 3 0196 31.424 257302142 256 62 12.01 1.783 1759 1736 1713 0 2531 267 268 2402 2012 3201102102 303 2993 2290 1791 2006 2005 44 455 4731 5.206 50334 4712 4564 5.767 555 55 146 5.995 .793 5517 328 6.710 6.418 145 S S 650 7.13 305 .495 2 07 593 7536 7.161 314 492 6.114 7.904 7457 7103 .750 .424 8.244 7.785 7.257 592 5.628 8.559 8.061 7.606 7.191 6.311 85 313 7.824 773 6.994 9122 56 022 749 7.120 9.372 8.756 3.201 7702 7250 9.604 8.950357339 7366 98 9129 514 763 7469 0675 0 8239077 422 784) 1028 0274 .427 894 8055 11.025 0.75 979 244 12:23 062 9015042 304 50 Appendicendue) Prelu anty $1 1.11 1407 1605 13 14 15 16 17 18 19 20% 25 30% 35% 40% 03000022 0. 347 30 01 0001690741 0.714 1.6 167 168 1605 as 1566 157 158 1440 1361 1209 2.351 2322 2283 2246 2210 2174 2140 2105 1952 1815 2.974 2914 2.855 2.75 2.7432 90 2539 2.589 2352 2156 1997 2.127 2058 29912689 2.436 2220 1.98 3.784 365 250 140 1410 1262951 241 215 2168 4.423 438 41604039 3922 1812 37063602161 202 203 2207 4.799 4.639 4.487 4344 4.207 4.078 3.954 3837 2329 2925 2.598 2.331 5.132 M 47724607 4303 163 40313.463 3019 2665 2379 5.436 5216 5019 4833 4.494 49 41923571 10922715 2414 5.67 5.453 234 5.029 4656 416 41273656 11472752 24 5918 5560 5.421 5197 4.793 4511 44393.725 3.190 2779 2456 61225342 5583 5.342 4910 4715 4533 3.780 3223 2799 2469 5.OB 48024611 14 2014 2.478 17 1824 13 1965 1977 2 1990 93 1993 1997 1990 6.604 6729 28229 69 703 7330 7,436 7634 767 265 5954 5668 5.152 493 4730 3.283 2034 2039 173 6047 5.222 98 4775 3910 3.295 240 2492 192 304 2.544 2454 S1 S2 S 316 500 400 1 2008 2006 6623 629 529 563 353101 410 14 2316202697 6.873 6.454 6.097 5.756 5.457 5.195 4548 3.985 3329 28562699 703 566 6177 529 55175.295 4979 3995 3322857 2500 7.10 6233 SI SUB 1900 23112057 2000 661 246 S S 4 22 4999 4000 23 2857 2000 1995 2000 2000 2000 20001
