Department of Business & Economics
Required: Answer the following problems in accordance with the instructions outlined below:
Please follow the submission requirements outlined below:
1) Answers are to be typed or NEATLY handwritten. Messy or illegible answers will not be marked. Print/write on only one side of each page.
Answers recorded on the back of any page will not be marked. Please provide all calculations necessary to support your answers.
The Excel spreadsheet described in Problem #4 is to be emailed to the instructor on or before the submission deadline.
2) A cover page is required. Please do not submit assignments in duo-tang or plastic covers.
3) This assignment is to be completed on an individual basis.
4) As we will be reviewing the solutions to the assignment in class on October 15‘ students are reguired to bring a copy of their solutions to class to review as we discuss the answers.
5) Severe penalties will be imposed for plagiarism.
Mr. G. Day has just invested $8,000 for his son (age one). The money will be used for his son’s university education 17 years from now. He calculates that he will need $60,000 for his son’s education by the time the boy goes to university. What annual rate of return will Mr. G. Day need to achieve his goal?