What is the present worth of college degree

Assignment Help Econometrics
Reference no: EM13207844

Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. He expects these costs to rise about $1500 each year while he is in college. If it will take him 5 years to earn his BS, what is the present cost of his degree at an interest rate of 6%? If he earns and extra $10000 annually for 40 years, what is the present worth of his degree?

Reference no: EM13207844

Questions Cloud

Found in the mendelian genetics exercises : you will have to do a cross like those found in the Mendelian genetics exercises. Suppose that Mendel did a cross between plants that varied in the color of the flowers of the pea plants. Some were purple and some were white
How such explanations tend to feed depression : describe how depressed people differ from others in their explanations of failure and how such explanations tend to feed depression
Use decimal notation-digits after decimal : A material with a modulus of resilience of 9.16 x 104 J/m3 and a modulus of elasticity of 141 GPa is known to have an average grain diameter of 0.0293 mm.
State moles of acid can the antacid counteract per gram : solution is needed to just neutralize excess acid after 20 mL of 0.500 M HCL was added to 1.00 g of the antacid, how many moles of acid can the antacid counteract per gram?
What is the present worth of college degree : Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. He expects these costs to rise about $1500 each year while he is in college.
What is the equivalent present value of the salaries : What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year The interest rate is 10%, compounded annually.
Explain surpassed in the back-titration with naoh : If the endpoint is surpassed in the back-titration with NaOH, will the reported amount of antacid in the sample be too high or too low?
Role sentencing plays in the criminal justice process : analyzing the integral role sentencing plays in the criminal justice process and its effects on society
What is the amount of ten equal annual deposits : What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year over the previous years

Reviews

Write a Review

Econometrics Questions & Answers

  What is the equation of the demand curve for clothing

A consumer purchases two goods, food (F) and clothing (C). Her utility function is U(F,C) = FC + C; thus, MUf = C and MUc = F + 1. The price of food is Pf , the price of clothing is Pc , and the income of the consumer is I.

  What is the maximum total increase in the money supply

Assume that before receiving the discount loan, FNB has no excess reserves. What is the maximum amount of this $10 million that FNB can lend out c. What is the maximum total increase in the money supply that can result from the Fed's discount loan

  What open market policy would recommend to increase income

Say that investment increases by 100 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 3. If the money multiplier is 5, and each 5-unit change in the money supply changes the interest rate by 1 percent, what op..

  What interest should she get to be able to retire as desired

Ann Isabel, a recent graduate from Tech, would like to be a millionaire when she will retire after 30 years. She would like to start with a deposit of $1,000 at the end of the first year and increase it every year by $400 thereafter. What interest..

  Calcutate the amount of profit that this firm earns

A monopolist produces according to the following demand curve: p=200 - 4Q. Assume that the firm faces a constant marginal cost and constant average total cost of 60 per unit produced. A.calculate the optimal output that this monopolist should produ..

  What is the marginal propensity to consume

Income Savings I(planned) Consumption 200 -20 60 400 0 60 600 20 60 800 40 60 1000 60 60 1. Fill in the last  column. 2. The equilibrium level of income in this example is  3. According to this data, the marginal propensity to consume is .

  Find cost of labor

Ford is budgeting $300,000 per year to pay for labor over the next 5 years. If the company expects the cost of labor to increase by $10,000 each year, and the annual interest rate is 10%, what is the expected cost of labor in the first year?

  Calculate the after-tax cash flows using macrs-gds

A loan of $200,000 at 7% interest will help fund the purchase. The loan is to be repaid in seven equal annual installments including interest. The firm's marginal income tax rate is 39%. The equipment qualifies for MACRS 5-year property.

  What factors give rise to the varying levels of market power

Many MBAs who ventured into the "dot.com" world of the late 1990s found themselves unemployed by 2001 as many firms in that industry ceased to exist. However, during their tenure with these companies, these managers gained valuable skills in how t..

  Legislative proposals to accomplish the goal

In your 1st position as a Finance manager you have been given responsibility for decreasing use of residential heating fuel in state. Choose one of three legislative proposals to accomplish this target

  How do we go about solving the problem

Sam purchased a machine 4 yrs ago at at cost of $8,000. It has a book value of $2300. It can be sold now for $4,300, or it could be sold for 3 more yrs,at the end of which time it would have no salvage value. assuming it is kept for 3 more yrs.

  Estimate the parameters in this model uniquely

What is wrong with this specification? Why is least squares unable to estimate the parameters in this model uniquely? What happens when you try to estimate this model using STATA? Verify that the coefficients on education and experience variables f..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd