Jennifer M
New member
Current total costs of? graduate school is $32,000 per year, but these costs are expected to grow each year at the rate of inflation (3.0% per year). You intend to enter a two-year program. Your first tuition bill is due at the end of three years (the 1st year of school) and the second tuition bill is due at the end of four years (the 2nd year of school). How much are total costs expected to be in three and four years, respectively? ***I came up with $34, 967.26 for the third year; $36,016.28.
B) The money in your investment account for your education earns an expected rate of 10% per year. How much money needs to be in your account three years from today (when you pay your first tuition bill)? Assume that you make no additional contributions to your account once you pay your first tuition bill?
C) Your account has only $41,000 right now, which will not be enough to cover all your tuition costs. You have the opportunity to add money to your account at the end of each of the next three years. If your account continues to earn 10% per year and you will make Three equal, how much should you contribute in each of these payments?
Please help : )
B) The money in your investment account for your education earns an expected rate of 10% per year. How much money needs to be in your account three years from today (when you pay your first tuition bill)? Assume that you make no additional contributions to your account once you pay your first tuition bill?
C) Your account has only $41,000 right now, which will not be enough to cover all your tuition costs. You have the opportunity to add money to your account at the end of each of the next three years. If your account continues to earn 10% per year and you will make Three equal, how much should you contribute in each of these payments?
Please help : )