This is a Business Finance Class that is going to require you to use financial calculators to find the answers and answers have to be correct.

Assignment #1

This is your 1st assignment. This assignment is directly from related to the time value

of money you learned in chapters 4 & 5. Answer the following question:

Lets assume that youre preparing for your (future) child (or grandchild)s college education. 20 years later from now, your (future) child (or grandchild) will go to college.

The following is the list of universities assigned to each of you.

Student

University 1

University 2

Cameron, Zaria Chanel

Princeton University

Georgetown University

Ceasar, Tonya D.

Harvard University

University of Southern California

Davis, Johnnie L.

Columbia University

UC – Berkeley

Henderson, Benjamin L

MIT

Emory University

Johnson, Lewis Henry

Yale University

UCLA

Keels, Lydia Tyreia

Stanford University

Washington University in St. Louis

Middleton, Joshua Dale

University of Chicago

Rice University

Youre considering the above two colleges for your (future) child (or grandchild). Estimate the future cost of college for your (future) child (or grandchild) and calculate needed annual savings for these colleges. Please specify your assumptions for the computation of future costs and needed annual savings. To earn the full credit, you need to show the process to get the answer in your report.

1. Please visit the website of each university, find tuition and related information, and summarize this information. Use out-of-state tuition information if the university assigned to you is a state university. Make sure that you include accurate information and citation source in your report (20 points).

2. Calculate the future tuition amount you need for your (future) child (or grandchild) in 20 years. Please make sure that you show how to use a financial calculator step by step or formula in your report. Using the tuition and related information in Question #1, you need to compound it at a reasonable “inflation” rate for education-related expenses for x number of years. I hope most of you are aware that educational inflation has been much higher than overall inflation in the economy, (You can find tuition inflation statistics from the internet. Use google.com and search for tuition inflation or education inflation) (40 points).

3. Calculate the annual deposit amount needed to have projected future tuition in 20 years. After you calculate the projected cost in Question #2, your next job is to find the annual deposit needed to accomplish the goal – meeting the educational expenses. You must assume the investment rate of return (You can use savings account rate as your investment rate of return, for example) (40 points).

This assignment should be typewritten. Please make sure that you turn in this report via Moodle. The due date for this assignment is June 6, 2021. Good luck!

For this assignment, you can use either an online financial calculator or mathematical formula. If you use an online financial calculator, you must include copies of the screenshots of your usage of online financial calculator in your report. If you use a mathematical formula, you must show every step in your report.

If you have any questions, please feel free to contact me.

Thank you!