Solution to Problem Set 1 1. You are considering various retirement plans. Your goal is to have a lump sum of $3‚000‚000 available (‘in the bank’) when you retire at age 67. The various plans‚ with their payment schedules‚ are listed below. In each case‚ calculate the payment(s) that must be made into the plan to ensure that you have the $3‚000‚000 available. For each plan‚ you may assume that your opportunity cost of funds is 6% per year; for each plan‚ you may assume that the phrase “at
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can’t go to college though‚ not with tuition this high. Why should they go anyway‚ all it ends in is debt‚ debt‚ and more debt. The obvious answer is the lower the cost. Then more people can go to college‚ which means more people can get education. This will most likely raise America’s status to the top 10‚ like it used to be‚ and this would be what students want. This is win-win for everyone. Well...mostly a win-win. Colleges need funding‚ and lowering tuition will not be a win for them. What will
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Why is college tuition rising if it means that more students have to take out student loans? Over half over of high school graduates are enrolled in college. College grants graduates access to a whole new world of careers and opportunities‚ so why doesn’t everyone go? The biggest deciding factor that turns many students away is the the huge financial burden that would then lay on them. The United States constantly says they want to help those in poverty and all the citizens living in less advantaged
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After graduating from Ohio State University with a degree in Finance‚ Kate Myers took a position as a stock broker with Merrill Lynch in Cleveland. Although she had several college loans to make payments on‚ her goal was to set aside funds for the next eight years in order to make a down payment on a house. After considering the various suburbs of Cleveland‚ Kate chose Lakewood as her desired future residency. Based on median house price data‚ she learned that a three-bedroom‚ two-bath house currently
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College tuition has been slowly becoming a major issue in the United States of America. Some people in America believe tuition for college students should be free. Meanwhile‚ others don’t believe the U.S. can profit if we give out costless education. However‚ there are many reasons why we should be moving towards a more affordable tuition; eventually arranging complimentary education. Since the founding of America‚ the government has attempted to paint a picture of America being this place for life
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Question 1 (5 points) $100 today is worth the SAME as $100 tomorrow. Your Answer Score Explanation True False Correct 5.00 Correct. You understand time value Total 5.00 / 5.00 Question Explanation We have assumed that time value of money is positive. Question 2 (5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years. Your Answer Score Explanation True Correct 5.00 Correct; it is compounding! False Total 5.00 / 5.00 Question Explanation All about compounding
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The Topic I decided to debate was should college athletes be paid a salary? The side that I decided to pick was the pro side. To begin‚ every year new college athletes are drafted‚ they are excited to play a college sport and represent their school.”Journalist Michael Wilbon has written that seeing the $11 billion deal between the NCAA and CBS/Turner Sports for March Madness between 2011 and 2024 prompted him to change his mind about paying student-athletes. First of all‚ this deal shows the amount
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The Army ’s tuition assistance program was suspended on May 8‚ 2013 because of the budget deficit. The Army’s tuition assistance program was available for troops to complete a high school diploma‚ certificate program or college or master’s degree. Under the program‚ the Army paid 100 percent of the tuition and authorized fees charged by a school up to established limits of $250 per semester hour or credit hour or up to $4‚500 per fiscal year. (Plumlee‚ 2013) Many thousands of soldiers currently
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of college tuition have been rising over the years. Many students are forced to work-study to get their college degree‚ and it is very hard to concentrate on studies while working part-time or even full-time jobs. Youth are demanding free college tuition to ease their lives. College tuition at publicly funded schools should be free because it would increase the number of educated people‚ eliminate student debt‚ and change or even save people’s lives. The issue of college tuition played an important
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on Tuition The cost tuition as risen dramatically over the past 10 years. According to a college scholarship site‚ Collegeboard‚ from 2010-2015 the "average published tuition and fees at public four-year colleges and universities increased by 13%.” Five years before that it was 24% and the percentages would only increase in the future. Because of this‚ a number of students are finding it difficult to pay for college degrees. I strongly feel that Colleges and universities should have a tuition limit
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