problemset_2005-6_key4714

problemset_2005-6_key4714 - Problem Set 6 EMA 4714 -...

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Unformatted text preview: Problem Set 6 EMA 4714 - Materials Selection and Failure Analysis KEY Due Monday, April 4, 2005 - 11:45 am Dieter Exercise 13.4 A father desires to establish a fund for his new child’s college education. He estimates that the current cost of a year of college education is $12,000 and that the cost will escalate at an annual rate of 4 percent. [a] What amount is needed on the child’s eighteenth, nineteenth, twentieth and twenty-first birthdays to provide for a 4-year college education? *********************************************************************** F = P[F/P,i,n] = 12k/[P/F,4,17] = 12k/0.51337 = $23,400 on 18th birthday = 23.4[1.04] 1 = $24,300 on 19th birthday = 23.4[1.04] 2 = $25,300 on 20th birthday = 23.4[1.04] 3 = $26,300 on 21st birthday [b] If a rich aunt gives $5000 on the day the child is born, how much must be set aside at 10 percent on each of the first through seventeenth birthdays to build up the college fund?...
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This note was uploaded on 10/19/2011 for the course EMA 4714 taught by Professor Staff during the Spring '08 term at University of Florida.

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problemset_2005-6_key4714 - Problem Set 6 EMA 4714 -...

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