Steve plans on studying in Montreal for 3 years and wish to rent an apartment. The rent is $1,000 per month in the first year, and will increase by 5% in year 2 and then again year 3. His father would like to give him enough money today so he can pay his rent for all three years, how much should he give him if the quoted rate on Steve’s account is 5% per year compounded monthly.
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Steve plans on studying in Montreal for 3 years and wish to rent an apartment. The rent is $1,000 per month in the first year, and will increase by 5% in year 2 and then again year 3. His father would like to give him enough money today so he can pay his rent for all three years, how much should he give him if the quoted rate on Steve’s account is 5% per year compounded monthly.
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- a client plans to send a child to college for four years starting 18 years from now. having set aside money for tuition, she decides to plan for room and board also. She estimates these costs at $20,000 per year, payable at the beginning of each year, by the time her child goes to college. If she starts next year and makes 17 payments into a savings account paying 5 percent annually, what annual payments must she make?Muhammed's parents anticipate they will need $7500 every 3 months for 4 years to pay for his tuition. They have 18 years until he goes to college. How much money should they invest every 3 months over the next 18 years at 6.4%/a compounded quarterly if they plan to withdraw $7500 per quarter for the 4 years after that to pay for his schooling?In two years Boris plans to enroll at Cleese University, a prestigious university in the Pacific Northwest of the USA. If the current tuition is $23,500 per year and is expected to increase at a rate of 6% per year, how much will Boris pay in tuition his first year of school? (His first tuition payment is exactly two years from today.) In his fourth year? (His last tuition payment is exactly 5 years from today) (Rounded to the nearest dollar.)
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- Oliver currently has $2,200 in a savings account paying 4.0% interest. He has a goal of taking a year-long around the world vacation. He has decided to deposit $150 from each paycheck (24 a year) for the next two years. Then he will leave on his vacation and withdraw an amount at the beginning of each month while he is on his cruise. How much will he be able to withdraw each month of his voyage?Your daughter just turned 5 years old. You plan to send her to college beginning on her 18th birthday. You will need to make payments of $8,000 at the beginning of each year for three years. If you can invest in an account that earns an annual effective rate of 4%, how much money will you need to put aside today to cover these payments?Madison is planning to save for his newborn daughter’s college tuition, to be paid in 18 years. The amount he wishes to have by that time is $70,000. He plans to deposit $2,300 in a bank account every year for 18 years, starting next year. Suppose the account pays 2% interest on deposits, compounded annually. How much would he need to deposit right now, to make up the remaining amount necessary by the end of 18 years? a. $13,378.03 b. $14,529.48 c. $15,841.33 d. $17,003.96 e. $18,458.72.
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