134b.hw1.f11 - thereafter a Estimate the present value of...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
134b/F11 Homework 1: due 10/4/11 Q1. Q2. Q3. Q4. A father wishes to make equal annual payments to a bank account earning a 5% interest rate to provide for his daughter’s education. He estimates the educational expenses of his daughter to be as follows: Starting in five years, $5,000 yearly for four years, and $4,000 yearly for two years
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: thereafter. a. Estimate the present value of the educational costs and the amount of each annual payment (assume 11 payments, starting today). b. The father decides to increase his annual contribution by 3% every year. Estimate the amount of the first annual payment if his total payments will just cover educational expenses....
View Full Document

This note was uploaded on 12/05/2011 for the course ECON 134b taught by Professor Johnhartman during the Fall '11 term at UCSB.

Ask a homework question - tutors are online