4. Domenic will attend college in about 10 years. To help pay for this, I...
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4. Domenic will attend college in about 10 years. To help pay for this, I would like to save $160,000 during the next 10 years. Assuming his investments can achieve a rate of return of 9% each year, please answer the following: a. How much would I have to invest in a one-time payment immediately? b. Now assume I have equal payments deducted from my paycheck at the end of each year. What is the necessary amount deducted each year? c. Now assume I have equal payments deducted from my paycheck at the end of year but starts off with $10,000 in the bank. What is the necessary amount deducted each year? d. Now suppose I expect the inflation rate to be 3% each year for the next 10 years. I wish to maintain the purchasing power of $160,000 in today's dollars. How much must I invest each year if I start off with $10,000 in the bank
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