Homework Help Question & Answers

Jamie Lee knows how hard it is to go to school, take on debt, and try...

Jamie Lee knows how hard it is to go to school, take on debt, and try to fulfill her dreams. Her sister, Rebecca, recently had a baby girl named Alexis. Jamie Lee would like to set aside a small amount per month towards Alexiss education expenses. Jamie Lee realizes this will not cover all of the costs but, she wants to help in a small way After researching college costs and investments, Jamie Lee has the following information Current cost of college education: $22,500 per year (Alexis will attend college in 18 years for 4 years.) Expected annual inflation: 2% Expected rate of return on investment: 10% Use the table below to determine the estimated annual deposit needed to achieve the education fund. (Use Exhibit 1-A Exhibit 1-B.) Estimated Cost of College Education Current cost of college education (including tuition, fees, room, board, books, travel $ 90,000.00 and other expenses) Years until starting college Expected annual inflation Future value factor (use Exhibit 1-A in Chapter 1 Appendix) Projected future cost of college adjusted for inflation 18 2% 0.00 Estimated Annual Savings Needed Projected future cost of college adjusted for inflation Years until starting college Expected annual rate of return on savings and investments Future value of a series of deposits factor (use Exhibit 1-B in Chapter 1 Appendix) Estimated annual deposit to achieve needed educational fund 0.00 18 10% NaN

Jamie Lee knows how hard it is to go to school, take on debt, and try to fulfill her dreams. Her sister, Rebecca, recently had a baby girl named Alexis. Jamie Lee would like to set aside a small amount per month towards Alexis's education expenses. Jamie Lee realizes this will not cover all of the costs but, she wants to help in a small way After researching college costs and investments, Jamie Lee has the following information Current cost of college education: $22,500 per year (Alexis will attend college in 18 years for 4 years.) Expected annual inflation: 2% Expected rate of return on investment: 10% Use the table below to determine the estimated annual deposit needed to achieve the education fund. (Use Exhibit 1-A Exhibit 1-B.) Estimated Cost of College Education Current cost of college education (including tuition, fees, room, board, books, travel $ 90,000.00 and other expenses) Years until starting college Expected annual inflation Future value factor (use Exhibit 1-A in Chapter 1 Appendix) Projected future cost of college adjusted for inflation 18 2% 0.00 Estimated Annual Savings Needed Projected future cost of college adjusted for inflation Years until starting college Expected annual rate of return on savings and investments Future value of a series of deposits factor (use Exhibit 1-B in Chapter 1 Appendix) Estimated annual deposit to achieve needed educational fund 0.00 18 10% NaN
0 0
Add a comment
Answer #1

Sign Up to Unlock the answer FREE

Already have an account? Log in

Fv factor

1.428246

Projected future cost

$128,542.16

Fv of series of deposit

45.5991731

Annual deposit required

$2,818.96

The above is calculated as per workings below

Book1 - Excel 《Product Activation Failed) Sign in - File Home InsertDrawPage Layout FormulasData Review View Tell me what you want to do Share Calibri 11A A 쿤므 wrap Text General ▼ Paste ta Merge & Center-5 . % , 4,0ナ Conditional Format as Cell Insert Delete Format . Sort & Find & Formatting Table Styles Styles Filter-Select- Clipboard反 Font Alignment Number Cells Editing C3 Current cost of education Years Annual inflation Fv factor Projected future cost 22500*4 18 0.02 4 (1+C4)A18 -D6 Projected future cost Years Rate of return Fv of series of deposit Annual deposit required 18 10 0.1 ((1+C10) C9-1)/C10 -D8/D11 12 13 14 15 16 17 Sheet1 Ready + 100 ENG 9:55 AM

Add a comment
Know the answer?
Add Answer to:
Jamie Lee knows how hard it is to go to school, take on debt, and try...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Jamie Lee knows how hard it is to go to school, take on debt, and try...

    Jamie Lee knows how hard it is to go to school, take on debt, and try to fulfill her dreams. Her sister, Rebecca, recently had a baby girl named Alexis. Jamie Lee would like to set aside a small amount per month towards Alexis's education expenses. Jamie Lee realizes this will not cover all of the costs but, she wants to help in a small way After researching college costs and investments, Jamie Lee has the following information: Current cost...

  • A. Jamie Lee needs to save a total of $7.000 in order to get started in...

    A. Jamie Lee needs to save a total of $7.000 in order to get started in her cupcake care venture. She is presently depositing $1,400 a Wear in a regular savings account Calculate the future value of these deposits B. Assuming that she leaves her emergency fund of $1,400 untouched, how much will her emergency fund be worth? c! What Jamie Lee had a relative that could give her money now that she could invest? What is the minimum amount...

  • Jamie Lee needs to save a total of $5,000 in order to get started in her...

    Jamie Lee needs to save a total of $5,000 in order to get started in her cupcake café venture. She is presently depo jear in a regular savings account Calculate the future value of these deposits. B. Assuming that she leaves her emergency fund of $1,000 untouched, how much will her emergency fund be worth? C. What if Jamie Lee had a relative that could give her money now that she could invest? What is the minimum amount sh need...

  • 1.Since Tanya Martin retired, she has used income from her investment in the Alger Mid Cap...

    1.Since Tanya Martin retired, she has used income from her investment in the Alger Mid Cap growth fund to supplement her other retirement income. During one three-month period, the fund grew by $13,000. If she withdraws 65 percent of the growth, how much will she receive? Withdrawal Amount: Dave bought a rental property for $570,000 cash. One year later, he sold it for $550,000. What was the return on his $570,000 investment? (Negative amount should be indicated by a minus...

  • Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day, ...

    Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day, just around the corner! It is the time of year again when Jamie Lee must file her annual income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $2,550 and also opened up a TFSA, to which she contributed $300. Her savings accounts earn 2 percent interest per year, and she also...

  • Continuing Case 22. Renting or Buying Housing Five years have passed and Jamie Lee, 34, is...

    Continuing Case 22. Renting or Buying Housing Five years have passed and Jamie Lee, 34, is considering taking the plunge-not only is she engaged to be married, but she is also deciding on whether to purchase a new home. Jamie Lee's cupcake café is a success! It has been open for over a year now and has earned itself rave reviews in the local press and from its regular customers who just cannot get enough of her delicious varieties of...

  • Jamie Lee Jackson, age 24, has recently decided to switch from attending college part-time to full-time...

    Jamie Lee Jackson, age 24, has recently decided to switch from attending college part-time to full-time in order to pursue her business degree, and aims to graduate within the next three years. She has 55 credit hours remaining in order to earn her bachelor's degree, and knows that it will be a challenge to complete her course of study while still working part-time in the bakery department of a local grocery store, where she earns $390 a week. Jamie Lee...

  • Continuing Case 69. Estate Tax Estimate Jamie Lee and Ross are in their late fifties and...

    Continuing Case 69. Estate Tax Estimate Jamie Lee and Ross are in their late fifties and enjoying planning for their next phase in life: retirement! The triplets are finishing their college educations and will be starting careers of their own in no time at all. As they prepare their children for the next chapter in their lives, Jamie Lee and Ross emphasize the importance of preparing for the future and drawing on their own experiences when offering advice to the...

  • Surprise! Jamie Lee and Ross were stunned to find that their family of two has grown...

    Surprise! Jamie Lee and Ross were stunned to find that their family of two has grown to a family of five! They were expecting twins, but when the babies were born, they discovered that they were actually the parents of triplets! Ross immediately had worries of being able to provide for the growing family: diapers, formula, college expenses times three! What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such...

  • Surprise! Jamie Lee and Ross were stunned to find that their family of two has grown to a family ...

    Surprise! Jamie Lee and Ross were stunned to find that their family of two has grown to a family of five! They were expecting twins, but when the babies were born, they discovered that they were actually the parents of triplets! Ross immediately had worries of being able to provide for the growing family: diapers, formula, college expenses times three! What if something happened to him or Jamie Lee? How would the surviving parent be able to provide for such...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT