plan for the theoretical couple Jack and Jill Uphill.
Jack is a graduate of the Fresno City College Nursing program. He is an ER nurse in Fresno and earns a salary
of $54,000. Jill is still attending
nursing school at Fresno State. She will
be a senior next year. She aspires to be
a Nurse Practitioner, (NP). She is
completing her Bachelors degree and then will enter graduate school to become
an NP. Jill is working as a student
nurse trainee on weekends, holidays and summers. Her earnings were $18,000 last year. She expects to make the same this year.
Jill needs one more year to complete her Bachelors degree, graduation date
fall 2014. The 2013/2014 CSU Fresno fee
schedule estimates fees of $3,143.50 per semester for students taking seven
plus units, full time, California resident, undergrad students. An annual parking permit costs $186. The cost for Graduate school is $3,776.50 per
semester for a student taking seven plus units.
Full time for a grad student is usually nine units. All fees are subject to change.
- Assuming Jack earns an
average wage increase of 5 percent for the next five years. What will be his wage in five years
- The CSU system had for
the past three years imposed a 10 percent fee increase per year. The Governor has stopped this fee
increase. Jill is fearful this increase
may begin when she starts grad school.
Assuming she is correct what will Jill pay in fees to complete two
years of grad school? Apply the fee increase to the two years of grad work
and the parking permit also.
- Jill is applying for a
scholarship for grad school. The future
value is $5000 per year, for two years.
If she is awarded it at the end of the next school year, one year
from now. What is the present value
of this future award? Assume an
inflation rate of 1.8 percent.
- Jack and Jill have one
car. It has served them well. However, when Jill is in her last year
of grad school she will need the car everyday to drive to different
clinics around the valley. Jack
would like to purchase a new car in two years. He would like to have $4,000 saved up as
a down payment. Jack has an
investment opportunity at the credit union that will pay 2 percent and can
be automatically deducted from his direct deposit check each month. How much will he have to put away each
month in order to meet his goal?