Please help with #3 and 4thank you Consult the table below, and answer the following questions:SchoolingSalary$18500$21000$23000$24800910111213141. What is the marginal rate of return for the 10th year of schooling in absolute terms?a. $2500b. $21000C. -$2500d. Uncertain without knowing the price of tuition.2. If this person's discount rate is 4%, how many years should they attend school?(Hint: convert the MRR to percentage terms)a. 9 yearsb.$26200$2700010 years11 years12 yearse. 13 yearsf.14 yearsc.d.3. If instead their discount rate were 8%, how many years should they attend school?a. 9 yearsb. 10 yearsc. 11 yearsd.12 yearse. 13 yearsf. 14 years4. Short answer: why can't we simply compare earnings of high school graduates tocollege graduates to estimate the effect of a college education on earnings?

The Marginal rate of return: The incremental earnings that are estimated to be earned by spending…

3. If instead their discount rate were 8%, how many years should they attend school? a. 9 years b. 10 years c. 11 years d. 12 years e. f. 13 years 14 years 4. Short answer: why can't we simply compare earnings of high school graduates to college graduates to estimate the effect of a college education on earnings?

3. If instead their discount rate were 8%, how many years should they attend school? a. 9 years b. 10 years c. 11 years d. 12 years e. f. 13 years 14 years 4. Short answer: why can't we simply compare earnings of high school graduates to college graduates to estimate the effect of a college education on earnings?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 3DTM

See similar textbooks

Similar questions

Your grandmother is gifting you GH¢ 100 a month for four years while you attend University to earn your Bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college? #randomized O A. GH¢ 4,201.16 O B. GH¢ 4,299.88 O C. GH¢ 4,509.19 O D. GH¢ 4,608.87
Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $60,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate of interest jpeg EA9F9D41-D35...jpeg 8A1B4474-4751..jpeg 8A1B4474-4751..jpeg
You want to save up to pay your 9-year-old child's college tuition fee, which costs $63,200, when he'll be 17. Given an interest rate of 3.5%, how much would you need to invest now to be able to pay for their college. Select one: a.$47,994.81 b.$21,403.06 c.$39,058.98 d.$29,394.81
Subject :- Accounting You have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $85,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}
Assume the total cost of a college education will be $224,140 when your child enters college in 12 years. You presently have $57,945 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Answer as a decimal fraction to four decimal places - ie, if you get 8.23%, enter the answer as 0.08 Next ▸
Assume the total cost of a college education will be $325,000 when your child enters college in 18 years. You presently have $85,000 to Invest. What annual rate of interest must you earn on your Investment to cover the cost of your child's college education? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Annual rate 7.74 %
suppose you are planning to buy a home in 8 years from now that costs you 59933 OMR, How much should you save each year in your bank account that pays 6.012 percent to reach your goal? Select one: a. 4645.36 b. None of the options c. 593438.59 d. 5497.58 e. 6052.80
4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)
Assume your child will enter college in 10 years. The total cost of a college education is estimated to be $60,000 at that time. You have $10,000 to invest today. What is the rate of interest that you must earn on your investment to cover the cost of your child's education? A. 17.21% B. 13.55% OC. 19.62% D. 25.52%
What would be more valuable, receiving $600 today or receiving $900 in four years if interest rates are 8.50 percent? Would you rather received $600 today or $900 in the future? Select either A) or B) and provide support for your answer (use TVM computation to support your answer). A) $600 today B) $900 in the future Provide support for your answer.
Assume the total cost of a college education will be $360,000 when your child enters college in 15 years. You presently have $58,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate %
6. Calculating Rates of Return Assume the total cost of a college education will be $235,000 when your child enters college in 18 years. You presently have $53,000 to invest. What annual rate of interest must you earn on your 03 investment to cover the cost of your child's college education?