Stephanie wanted to save for her daughter's education. Tuition costs $10,000 per year in today's dollars. Her daughter was born today and will go to school starting at age 18. She will go to school for 4 years. Stephanie can earn 12% on her investments and tuition inflation is 6%. How much must Stephanie save at the beginning of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college

The amount that Stephanie must save at the beginning of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college is:

= $6,428.46.

Explanation:

a) Data and Calculations:

Tuition costs per year in today's dollars = $10,000

Total tuition costs for 4 years in today's dollars = $40,000

Number of periods to save = 18 years

Interest rate on investments = 12%

Tuition inflation rate = 6%

Stephanie needs to save $6,428.46 at the beginning of each year, calculated as follows from an online financial calculator:

N (# of periods)  18

I/Y (Interest per year)  18

PV (Present Value)  40000

FV (Future Value)  0

Results

PMT = $6,428.46

Sum of all periodic payments = $115,712.21

Total Interest = $75,712.21

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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