Please help... I have no idea how to solve this.  Your parents have accumulated a $170,000 nest egg. ?

6 Answers

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  • 3 weeks ago

    Just what is your question ?

  • David
    Lv 7
    4 weeks ago

    Make sure that you're the principle benefactor in their wills and maybe use your own resources in their untimely deaths.

  • Anonymous
    4 weeks ago

    Neither do we because in spite of the ? at the end, it's not a question.

  • Take out the 32000 that they're giving to the sister

    138000

    They're going to spend 10000 per year for 4 years while getting 8% per year in interest

    138000 - 10000 = 128000

    128000 * (1 + 0.08) = 128000 * 1.08 = 128000 + 10240 = 138240

    138240 - 10000 = 128240

    128240 * 1.08 = ‭138499.2‬0

    138499.20 - 10000 = 128499.20

    128499.20 * 1.08 = ‭138779.14

    138779.14 - 10000 = 128779.14

    128779.14 * 1.08 = ‭139081.47

    They're going to spend 29780 per year sending you to college.

    (139081.47 - 29780) * 1.08 = ‭118,045.5876‬ = 118045.59

    (118045.59 - 29780) * 1.08 = ‭95,326.8372‬ = 95326.84

    (95326.84 - 29780) * 1.08 = ‭70,790.5872‬ = 70790.59

    (70790.59 - 29780) * 1.08 = ‭44,291.4372‬ = 44291.44

    (44291.44 - 29780) * 1.08 = ‭15,672.3552‬

    Looks like you can manage 5 full years.

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  • Henry
    Lv 5
    4 weeks ago

    The answer is that that isn't a question, as told by the period at the end!

  • 4 weeks ago

    They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $32,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years. Use 8 percent as the appropriate interest rate throughout this problem. Use Appendix A and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

    a. How much money will your parents have at the end of four years to help you with graduate school, which you will start then?

    b. You plan to work on a master’s and perhaps a PhD. If graduate school costs $29,780 per year, approximately how long will you be able to stay in school based on these funds?

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