2. Jack and Jill have just had their first child. If college is expected to costP150,000 per year in 18 years, how much should the couple begin depositing annually at the end of each year to accumulate enough funds to pay the first year's tuition at the beginning of the 19th year? Assume that they can earn a 6% annual rate of return on theirinvestment.

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A: Using excel PV function

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Q: How much money must you deposit in an account each year to fund your children’s education? Your…

A: Information Provided: College expenses = $45,000 Interest rate = 5%

Q: 1. William Jack and Sophia Rose are planning on their first child education. If they expect that…

A: "As per the policy of our company, In case of multiple questions asked then, we are allowed to…

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A: Present value and future value is computed by discounting or compounding an amount. Future value is…

Q: You need 40,000 pesos per year for 4 years to go to college. Your father invested 50,000 pesos at 7%…

A: Requirement = 40,000 per year for 4 years Initial Investment = 50,000 Interest = 7%

Q: Matilda is planning for her daughter’s university education to begin five years from today. She…

A: PRESENT VALUE OF ANNUITY: PVA=A×1-11+rnr where, A=annuity r=rate of interest n=number of years

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A: Roth IRA is a scheme for contribution into retirement account by the citizens of the United States…

Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Initial investment = $10,000 Period = 18 years Interest rate = 0.1024  Accumulated amount = ?

Q: William Jack and Sophia Rose are planning on their first child education. If they expect  that…

A: College cost after 18 years = RM 150000 Number of deposits (n) = 18 r = 6% Let the annual deposit =…

Q: A newborn child receives a $7,000 gift toward a college education from her grandparents. How much…

A: Inerest rate (decimal form) = Interest rate100=5%100=0.05   Quarterly interest rate (decimal form)…

Q: Cathy wishes her daughter Aleah receive Php 100,000 ten years from now. What amount should she…

A: In this problem, first we have find present value at the end of 2 years taking time as 8 years and…

Q: Michael’s child is going to college in 13 years. If he saves $ 7,000 a year at 9% compounded…

A: Future Value: A present asset's future value, abbreviated as FV, is the value that an asset is…

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

A: Information: a) In part 1,we first have to calculate the present value of annual payments at time=50…

Q: Suppose a newlywed couple is planning lo buy a home two years from now. To save the down payment…

A: Computation:

Q: Sam Long anticipates he will need approximately $225,000 in 15 years to cover his daughter's college…

A:

Q: You are saving for the college education of your two children. They are two years apart in age; one…

A: Present value of the fees for each of the 2 kids is calculated.Kid 1 (elder kid enters collect after…

Q: You have saved $120,000 for your child to attend college. If it is in an account earning an annual…

A: given, future value = $120,000 r = 6% n = 4 years

Q: Mike Gordon wishes to have $80,000 in five years. If he can earn annual interest of 2%, how much…

A:

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: Future value required (FV) = $ 200,000 Interest rate = 5% Monthly interest rate (r) = 5%/12 =…

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: What lump sum do parents need to deposit in an account earning 11%, compounded monthly, so that it…

A: Given: Interest rate = 11% Future value = $90,000 Years = 16 Compounding is monthly

Q: 1. To save for their new child's college education, a couple places $28,400 in an account. What…

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A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Phil Nelson anticipates he will need approximately $227,000 in 11 years to cover his daughter’s…

A: The money that is required to be invested today by PN is the present value of the amount of $227,000…

Q: Becky would like to be a millionaire in 40 years. How much would she need to invest quarterly in a…

A: Given:

Q: 1)A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…

A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…

Q: A family wants to have a $160,000 college fund for their children at the end of 15 years. What…

A: Using excel PMT function

Q: compounded

A: Introduction: The amount to be saved & received at the end of a particular duration is referred…

Q: You are saving for the graduation (4 years) of your two children. They are two years apart in age;…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

A: Given information : Time to retire (years) 50 Periodic expense during retirement $32,000…

Q: When your first child is born, you begin to save for college by depositing $225 per month in an…

A: Future value is calculated by multiplying the present value with the 1+r factor for the given rate…

Q: A couple wants to save for their daughter's college expense. The daughter will enter college eight…

A: Future value is the value of assets at a future date for a given growth rate. It is given as: FV =…

Q: Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be…

A: Present value: The money having at present has more value than receivable in future. Formula: FV =…

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

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Q: A person wishes that his son becomes an Engineering graduate. To achieve this he starts saving every…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year in retirement, which…

A: The problem is based on the concept of time value of money which says that money received today is…

Q: Assume the total cost of a college education will be $200,000 when your child enters college in 15…

A: future value formula: future value=present value×1+rn where, r=rate n=number of years

Q: He wants to set aside his annual bonus at the end of each year to pay her college costs in 18 years.…

A: in this problem we have to find future value FACTOR and than future value.

Q: Aunt Zelda’s son starts college in 5 years for which she will need $15,000 payable at the end of…

A: Aunt Zelda will buy an annuity at the beginning of year 5 that will pay $15000 for college at the…

Q: A family wants to have a $220,000 college fund for their children at the end of 16 years. What…

A: The series of regular payment at the end of each specified intervals is known as ordinary annuity.…

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $400…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8…

A: Time value of money refers that, a sum of money today has more value than the same amount received…

Q: A family want to have a $241,000.00 higher education fund for their children at the end of 22 years.…

A: The calculation is:

Q: William Jack and Sophia Rose are planning on their first child education. If they expect that…

A: Given information :  Amount Required at the end of 18 years = RM 150,000 Annual rate of return = 6%…