#1) Financing your child’s education.

You plan to invest part of your paycheck to finance your children’s education. You want enough money in the account to be able to draw $1000 a month, every month for 8 years beginning 20 years from now. The account pays 0.5% interest every month.

A. How much money will you need 20 years from now to finance one child’s education? Assume you stop investing when the first child begins college (a safe assumption!).

B. How much must you deposit each month over the next 20 years?

#2) Darts

Construct and perform a Monte Carlo simulation of a darts game. Points are awarded as follows:

Dart board area Points
Bulls-eye 50
Yellow 25
Blue 15
Red 10
White 5

From the origin (the center of the bulls-eye), the radius of each ring is as follows:

Ring Thickness (in.) Distance origin to outer ring edge (in.)
Bulls-eye 1.0 1.0
Yellow 1.5 2.5
Blue 2.5 5.0
Red 3.0 8.0
White 4.0 12.0

The board has a radius of 1 ft (12 in.).

Make an assumption about the distribution of how the darts hit on the board. Construct a simulation of the game in an Excel worksheet. Run 1000 simulations to determine the mean score for throwing five darts. Also determine which ring has the highest expected value (point value times the probability of hitting that ring).

Price: $16.95

Solution: The downloadable solution consists of 4 pages, and 405 words
Deliverable: Word Document and pdf