Calculate the fraction of your salary to be saved

Assignment Help Financial Management

Reference no: EM131451024

You need to pay for 4 years of tuition starting 15 years from now. The tuitions are $32,000, $34,000, $36,000, and $38,000 respectively. You plan to save a fixed fraction of your salary starting at the end of this year, and ending with the last tuition payment in 18 years. At 6% interest, starting with your salary of $80,000 this year and a 3.2% salary increase per year, calculate the fraction of your salary to be saved. The first tuition payment is at the end of the year 15.

Reference no: EM131451024

Questions Cloud

The underlying makes no cash payments : The spot price is $30, the annual risk-free rate is 4 percent, and the underlying makes no cash payments

Mortgage to finance the purchase of large tract of land : You have just arranged for a $1,740,000 mortgage to finance the purchase of a large tract of land.

Discuss the effectiveness of anti-depressants : Discuss the effectiveness of anti-depressants. How might you treat someone with a specific phobia

What specific recommendations would you make to the senior : What specific recommendations would you make to the senior management team in the development of their strategic management plans with the issues facing.

Calculate the fraction of your salary to be saved : At 6% interest, starting with your salary of $80,000 this year and a 3.2% salary increase per year, calculate the fraction of your salary to be saved.

Analyze verbal and nonverbal techniques : Ensure that your PowerPoint presentation fulfills the appropriate length requirements and professional style requirements.

Describe grin blatt and moskowitz regression model : Describe how momentum can be refined by conditioning on the entire term structure of interest rates in the manner of the Grin blatt and Moskowitz regression.

What characterizes children with learning disabilities : What characterizes the development of the brain in middle and late childhood? Who are children with disabilities? What characterizes children with learning

What is the cost of each alternative : Patriots Corp. is analyzing the possible acquisition of Jets Company. Both firms have no debt. What is the cost of each alternative?

User Account

All Pages