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##### education fund calculation

 Business & Finance Tutor: None Selected Time limit: 1 Day

Inflation rate: 3%

Investment return: 7%

Real return: (1+ 0.07)/ (1 + 0.03) - 1 = 3.88%p.a. = 0.32% per month

4years later will enter university, education fee is \$50000per year, total 2years

calculate payment per month if he want to invest.

Apr 6th, 2015

 Total at end \$100,000 i 3.88% Period Monthly investment PV 1 1922.988609 1929.206 =1922.98/(1+3.88%/12)^1 2 1922.988609 1935.444 =1922.98/(1+3.88%/12)^2 3 1922.988609 1941.702 4 1922.988609 1947.98 5 1922.988609 1954.279 6 1922.988609 1960.597 7 1922.988609 1966.937 8 1922.988609 1973.296 9 1922.988609 1979.677 10 1922.988609 1986.078 11 1922.988609 1992.499 12 1922.988609 1998.942 13 1922.988609 2005.405 14 1922.988609 2011.889 15 1922.988609 2018.394 16 1922.988609 2024.92 17 1922.988609 2031.468 18 1922.988609 2038.036 19 1922.988609 2044.626 20 1922.988609 2051.237 21 1922.988609 2057.869 22 1922.988609 2064.523 23 1922.988609 2071.198 24 1922.988609 2077.895 25 1922.988609 2084.614 26 1922.988609 2091.354 27 1922.988609 2098.116 28 1922.988609 2104.9 29 1922.988609 2111.706 30 1922.988609 2118.533 31 1922.988609 2125.383 32 1922.988609 2132.255 33 1922.988609 2139.15 34 1922.988609 2146.066 35 1922.988609 2153.005 36 1922.988609 2159.967 37 1922.988609 2166.951 38 1922.988609 2173.957 39 1922.988609 2180.986 40 1922.988609 2188.038 41 1922.988609 2195.113 42 1922.988609 2202.21 43 1922.988609 2209.331 44 1922.988609 2216.474 45 1922.988609 2223.641 46 1922.988609 2230.831 47 1922.988609 2238.044 48 1922.988609 2245.28
if total is 50000 at the end then monthly payment is 1922.988/2 = \$961.5

Apr 6th, 2015

thanks

May 1st, 2015

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Apr 6th, 2015
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Apr 6th, 2015
Dec 6th, 2016
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