How much will be able to pay annually for each of daughter

Assignment Help Econometrics

Reference no: EM13224707

You have two daughters, born two years apart. The difficulty of putting away money for their college educations precludes you from saving on a continuous basis for both. After reviewing your financial condition and projections, you think that the best you can do is to put away $2,500/year for 10 years for daughter #2. After that time daughter #1 will begin college and your surplus cash flow will be devoted to paying her tuition and rooming costs, leaving nothing to put aside for daughter #2, who will start college 2 years later. Assuming a 7% average return over this entire period, how much will you be able to pay annually for each of daughter #2's (anticipated) 4 years in college?

Reference no: EM13224707

Questions Cloud

What is the expected return of migrating to the city : Assume that the going wage in agriculture is normalized at 1. The wage in the formal urban sector is 3. The wage in the informal sector is 0.5. Additionally, 20% of working adults who live in the city are employed in the formal sector. Also, assum..

State sodium borohydride reduction : in a sodium borohydride reduction experiment explain any color changes observed when sodium borohydride was added.

Explain reaction order with respect to nitrogen monoxide : For the reaction of nitrogen monoxide, NO with chlorine, Cl2, 2NO(g) + Cl 2(g) -> 2NOCl(g) ; the observed rate law is : Rate = K[NO]^2 [Cl] What's the reaction order with respect to nitrogen monoxide? With respect to Cl2? What's the overall order?

Explain servant-leadership theory : Is Situational Leadership Model a useful model and how can we apply this model effectively and how is the servant-leadership theory different from transformational leadership?

How much will be able to pay annually for each of daughter : The difficulty of putting away money for their college educations precludes you from saving on a continuous basis for both. After reviewing your financial condition and projections, you think that the best you can do is to put away $2,500/year for..

What kind of media consumer are you : What do your habits/patterns tell you about your consumption? What kind of media consumer are you? Are there any habits you aren't satisfied with and would like to change? How does your media consumption shape your behavior, attitude, beliefs and ..

Explain the reaction exothermic or endothermic : in a sodium borohydride reduction experiment is the reaction exothermic or endothermic and why?

Explain a solution of sodium hydroxide : A solution of sodium hydroxide is prepared by mixing 2.00g of NaOH with 10.0g of water. The percent, by mass of NaOH is what?

How much must he save during each of the next 10 years : Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $55,000 has today.

User Account

All Pages