Question: Your younger sibling tells your parents that he is off to Ball State in 4 years to get a degree. Your parents have been saving $ 5000 per year for the last 10 years at 5%. TheUni will cost $ 25,000 per year. The parents decide that they need to save more and increase their saving to $ 10,000 per year. The interest rate goes up to 6%.
a. Will your brother have the funds to go to College?
b. You would like your parents to ‘gift' you $ 10000 per yearfor 5 years. This will enable you to pursue a MBA/Ph. D. Your parents say ‘YES."
c. Your parents plan to spend $ 510000/year travelling. How many trips can they make?