MATH 1030-005, Group Project Worksheet Spring 2010Group Members:Instructions: This worksheet must be turned in with the summary paper by April 14.Complete each question, and if you are asked to make a computation, show all of your work.Write neatly and legibly. Points may be deducted if answers are incorrect, incomplete, ormessy.I. Calculating the CostPutting a child through college is a huge expense. In this project, you will explore the cost ofcollege for your children and an investment strategy to cover the costs. Suppose that you havetwo children, Mark and Robert, whom you wish to send to college. Mark will start college inthe fall of 2024, and Robert will start college in the fall of 2025.1. For each child, select a different university you would like him to attend. Find thecurrent annual cost of room and board in a dormitory and tuition at each school.(a) (Mark)• Annual room and board:• Tuition:• Yearly total:(b) (Robert)• Annual room and board:• Tuition:• Yearly total:2. Suppose the current cost of an item is C. Write down a formula to find the cost of thisitem after Y years assuming a constant 3% inflation rate during this period. Explain.13. Using the formula from the previous question, how much will you have to pay in totalfor Mark’s first year of school?4. Suppose that Mark and Robert each take five years to complete their degrees. Fill inthe table below.Year Cost for Mak Cost for Robert Total Cost2024 N/A202520262027202820292II. Investment PlanNext, we need to figure out how much to deposit each month in an investment plan to payfor your children’s expenses. We’ll work out one investment strategy below.1. Contact two different financial institution to find the APR for a savings account.Choose the institution with the higher APR to answer the subsequent questions.(a) Financial institution:• APR:(b) Financial institution:• APR:2. Suppose you open one savings account for each year you will have at least one child incollege. Savings account #1 will hold the money for the first year of college expenses,when only one child will be attending college. Savings account #2 will hold the moneyfor the second year of college expenses, when both children will be attending college,and so on. You will have six savings accounts in all. From question I.4, you know howmuch you will want in savings account #1 by 2024. Compute the monthly paymentrequired to reach this goal.33. Compute the monthly payments required for each of the savings accounts, then addthe six different monthly payments together to find your total monthly payment.• Account #1– Monthly payment:• Account #2– Monthly payment:• Account #3– Monthly payment:• Account #4– Monthly payment:• Account #5– Monthly payment:• Account #6– Monthly payment:• Monthly total:4. Discuss whether the total you found this will be a reasonable amount for you to investeach month.45. Compute the total amount you will have invested and compare this to the total costof your children’s educations.6. Discuss (in detail) the benefits and drawbacks of this investment plan. Can you thinkof a better
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