9. Every six months for 5 years, a father places Php8,200 in a trust fund for his only child's education. If the money earns at 12% compounded semi-annually, how much will be in his account after the last placement?
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- At the birth of his grandson, Jethro commits to help pay his college education. He decides to make deposits of Php 10 400 at the end of each three months into an account for 12 years. Find the amount of annuity assuming 10% compounded quarterly.6. To support his handicapped niece, Tony made payments of $1800 into a fund at the beginning of every 3 months. If the fund earns interest at 5.24% compounded quarterly, how much will the balance in the fund be after 18 years?At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If Deja takes the money in 48 equal monthly withdrawals with the first in 16 years (when the Deja is 18), then what is the size of each payment?
- On January 1, Alan King decided to transfer an amount from his checking account into aninvestment account that later will provide $80,000 to send his son to college (four yearsfrom now). The investment account will earn 8 percent, which will be added to the fund eachyear-end.Required (show computations and round to the nearest dollar):1. How much must Alan deposit on January 1?2. What is the interest for the four years?At age 60, a man established a trust fund of R20 000 which will pay his family a regular amount at the end of each month for 12 years after his death. If he dies at age 65, what monthly sum will the family receive if the fund earns 3% p.a. compounded monthly and if the first payment will be made 1 month after his death?May deposits PhP 20,000 into a fund at the beginning of each year for 10 years.At the end of 15 years, she makes an additional deposit of X.At the end of 20 years, May uses the accumulated balance in the fund to buy a perpetuity-immediate with annual payments of PhP 30,000 per year for 10 years, and PhP 15,000per year thereafter.Interest is credited at an annual effective rate of 6%. Calculate X.
- Tatsumi invested Php10,000 now for the college education of his three-year old son. If the fund earns 14% effective, how much will the son get each year starting from 19th to 22nd birthday?At birth of his grandson, Gregorio Sirug commits to help pay his college education. He decides to make deposits of P10,400 at the end of each three months into an account for 12 years. Find the amount of annuity assuming 10% compounded quarterly.Shane contributed $2,250 at the end of every 3 months into an RRSP fund earning 2.41% compounded quarterly for 11 years. a. What is the future value of the fund at the end of 11 years? b. What is the amount of interest earned over this period?
- A young engineer wants to provide his newly born daughter a lump sum of P 2.0M when she graduates college at the end of 21 years. To achieve this he deposits at the end of every month a certain amount in a fund that earns 12% compounded monthly. How much is the monthly deposit?Laurence contributed $4,135 at the end of every 6 months to an RRSP fund earning 7.11% compounded semi-annually for 12 years. a. What was the future value of the fund at the end of the term? Round to the nearest cent b. What was the amount of interest earned over this period? How much money should Zhang invest today in a fund that earns interest at 3.36% compounded quarterly, if she wants to receive $4,500 at the end of every 6 months for the next 4 years? Timothy planned to buy a house but could afford to pay only $13,500 at the end of every 6 months for a mortgage with an interest rate of 5.50% compounded semi-annually for 20 years. She paid $24,750 as a down payment. a. What was the maximum amount she could afford to pay for a house? Round to the nearest cent b. What was her total amount spent for the house through the mortgage period including the downpayment (not taking the time-value of money into account)? Round to the nearest cent c. What was the total amount of…Shauna wishes to establish a trust fund from which her son can withdraw $50,000 every six months for 18 years, when he reaches 30 years old. After 8 years, he will receive $500,000 for college. The trust will be invested at 8.7% per annum compounded semi-annually. How large should the trust be?
