A family is saving for their child's education. They want to have $80,000 eighteen years from now . a.) How much do they need to deposit each month into an account earning 7.2% interest compounded monthly?  b.) What is the interest earned on the account?

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A: Using excel PV function

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A:

Q: You deposit $100 each month into an account earning 6% interest compounded monthly. a) How much…

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A: FV = PV * e^(rt)

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Present value can be defined as the amount which is to be set aside in order to have a pre-defined…

Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a. How much will…

A: Time value tells that money received today by an individual has more value than that of receiving…

Q: how much money will be in the account? How much of it is interest?

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A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…

Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a) How much…

A: Monthly Deposit = 200 Monthly Compounding Time Period (n) = 240 months Interest Rate (r) = 3%/12 =…

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A: Present Value = Monthly Contributions * PVAF ( Monthly Rate, number of Months )

Q: Suppose a young couple deposits $900 at the end of each quarter in an account that earns 7.6%,…

A: This question is an application of annuity. The future value of an annuity with equal periodic…

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A: Initial deposit (D) = P 5000 Withdrawal in year 17 (W1) = P 4000 Withdrawal in year 18 (W2) = P 4000…

Q: Suppose you want to have $700,000 for retirement in 25years. Your account earns 9% interest. a) How…

A: In this we need to calculate the future value factor monthly and than calculate the monthly payment…

Q: How much does Steve need to invest today, If he wants to have $50,000 in 15 years? He opens an…

A: Present Value = Future Value / (1+r)^n Where, r = rate of return per period i.e. 7.8%/12 = 0.65% or…

Q: A child age 3 is given $20,000. The amount is put into savings account which pays 4% compounded…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest. a)…

A: Future value of annuity  = P * [ (1+r)^n  - 1 ] /r  Where, r = rate of interest per period i.e.…

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

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A: Compounded:- Compounding is the process of reinvesting an asset's earnings, whether capital gains or…

Q: Suppose a young couple deposits $900 at the end of each quarter in an account that earns 6.2%,…

A: Given that  p= $ 900 deposited each quarter  r = 6.2% compounded quarterly after 9 years  p= $ 200…

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A: Working note:

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A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4=…

Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 7% interest. a) How…

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Q: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 9% interest. a) How…

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Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Here, we need to calculate the present value which needs to be deposited or kept aside by the couple…

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A: Given:

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Q: Tony wants to have $10,000 in 10 years after investing in an account that earns 4.6% compounded…

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Q: A family has $16,000 saved for college tuition. They will need $64,000 for college expenses five…

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A: Given: Future value = $47,000 Years = 19 Interest rate = 4.3%

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A: a) Money in account in 30 years: Solved using Financial Calculator  PMT = -300 N = 12 * 30 = 360 I/Y…

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Q: Assume the money earns 7% interest, compounded quarterly

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A: Future value (FV) = Php800,000 Monthly interest rate (r) = 0.0116666666666667 (i.e. 0.14 / 12)…

Q: You deposit $300 each month into an account earning 3% interest compounded monthly. a) How much will…

A: Monthly deposit (P) = $300 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 15…

Q: What principal must be deposited

A: Compound interest is the amount of interest that is added with the principal amount of deposit or…

Q: You deposit $200 each month into an account earning 5% interest compounded monthly.  How much will…

A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…

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A: Future Value Required = 40,000 Deposit = 200  End of month deposits Monthly Compounding, Number of…

Q: What payment every year should Carie deposit to her savings account in order to save $37,100 in 11.5…

A: Given: Future value(FV) = $37,100 Years = 11.5 Interest rate = 3.19%

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A: Present Value: It represents the present worth of the future amount and is computed by the…