Caso Quilicis

Greg Earns 85000 per year Stanford North Carolina

Stanford tuition 20000 per year Tuition Increase Rate 5% 5%

N. Carolina tuition 2500 per year Living expenses $6,000 $6,000

Brady´s Current age 5 years 18 years Inc. Living expenses 3% 3%

Years remaining 13 years Mutual fund Interest 12% 12%

La pareja desea que sea retirada de manera automatica, una cantidad mensual predeterminada, de su cuenta de cheques

Cuando Brady, entre a la universidad ellos liquidaran la cuenta haciendo un pago anual para cubrir la colegiatura y gastos diarios

al principio de cada año, por los 4 años que durara en la universidad.

1. How much will be the tuition and living expenses per year when Brady is ready to attend? Give an answer for each university.

STANFORD North Carolina

Años Tuition Living expenses TOTAL Años Tuition Living expenses TOTAL

1 $37,712.98 $8,811.20 $46,524.19 1 $4,714.12 $8,811.20 $13,525.33

2 $39,598.63 $9,075.54 $48,674.17 2 $4,949.83 $9,075.54 $14,025.37

3 $41,578.56 $9,347.80 $50,926.37 3 $5,197.32 $9,347.80 $14,545.12

4 $43,657.49 $9,628.24 $53,285.73 4 $5,457.19 $9,628.24 $15,085.43

$199,410.45 $57,181.24

Tuition = $20,000 al año Tuition = $2,500 al año

Inc. Anual = 5% Inc. Anual = 5%

No. De periodos 13 -14-15-16

Living expenses = $6,000

Inc. Anual = 3%

2. Once Brady starts college what will his total expenses be in each of his four years? Again, give an answer for each university.

3. How much money will Greg and Debra have to deposit per month to allow Brady to attend Stanford University? How much money will have to be deposited per month to allow Brady to attend the University of North Carolina? (HINT: To answer this question you need to consider the costs of ALL four years.)

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