Chapter 7 HW-finplan

Chapter 7 HW-finplan - Chapter 7 HW 10. Strategies for tax...

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Chapter 7 HW 10. Strategies for tax advantages include: Series EE Bonds, Roth IRAs, Uniform Gift to Minors Act, Hope Scholarship credit, lifetime learning credit, QTPs, Coverdell Educational Savings Account, interest on loans for school and equity lines of credit. Questions 4, 5, 6, 7, 12, 13, 14, 16, 17, 18, 19 4. Federal aid programs available- Federal Pell Grants, Stafford, PLUS and Federal Perkins Loans, and Federal Supplemental Educational Opportunity Grant. I would recommend a subsidized Stafford loan that way interest does not accumulate while she is in school and she won’t have to start paying until six months after she graduates. She could then use her trust fund to pay it off as soon as possible so that she won’t have to pay a lot in interest payments. I would not recommend borrowing against her 30,000 trust fund because she would have interest the whole time instead of subsidizing it with the loan. 5. (3,500 x 1.07^16)+(3,500 x 1.07^17)+(3,500 x 1.07^18)+(3,500 x 1.07^19)=
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This note was uploaded on 09/22/2010 for the course FIN 3055 at Virginia Tech.

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Chapter 7 HW-finplan - Chapter 7 HW 10. Strategies for tax...

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