Learning Goal: I’m working on a finance question and need an explanation and ans

Learning Goal: I’m working on a finance question and need an explanation and answer to help me learn.Thomas is planning for the day when his child, Sarah, will go
to college. Sarah has just turned nine and plans to enter college on her 19th
birthday (exactly 10 years from today). She will need $28,000 at the beginning
of each year (for four years) whilst at college. Thomas plans to give Sarah a
BMW as a combination graduation and 23rd birthday present. The BMW is expected
to cost $55,000. Thomas currently has $10,000 saved for Sarah. He also expects
to inherit $28,000 nine years from today, all of which will go towards covering
the education expenses for his daughter. The relevant discount rate is 7
percent per annum compounded monthly. How much must Thomas save at the end of
each month, for the next 10 years, to provide for Sarah’s education and the BMW?
Requirements: NA   |   .doc file

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