A father plans to set aside Php250,000 for his son's college education. If he wishes to have Php500,000 in 5 years, at what rate converted annually should he invest his money?
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- Funding a retirement goal. Austin Miller wishes to have 800,000 in a retirement fund 20 years from now. He can create the retirement fund by making a single lump-sum deposit today. a. If upon retirement in 20 years, Austin plans to invest 800,000 in a fund that earns 4 percent, what is the maximum annual withdrawal he can make over the following 15 years? b. How much would Austin need to have on deposit at retirement in order to withdraw 35,000 annually over the 15 years if the retirement fund earns 4 percent? c. To achieve his annual withdrawal goal of 35,000 calculated in part b, how much more than the amount calculated in part a must Austin deposit today in an investment earning 4 percent annual interest?7. You need a P70, 000.00 per year for four years to go to college. Your father invested an amount of P100, 000.00 in a 7% account for your education when you were born. If you withdraw the money worth P70, 000.00 at the end of your 18th, 19th, 20th and 21st years, how much much money will be left in the account at the end of your 22nd year?Question 6 John Adams plans to retire at the age of 62. He wants an annual income of $60,000 per year. He believes that he will live to be 87. He will draw the money at the beginning of each year. How much money will he need when he retires in order to support his $60,000 annual life style if he will average 12 percent per year on his retirement account? a. $527,059 b. $470,586 c. $439,800 d. $505,302
- 10. Dale wants to invest money in a 6% CD account that compounds semiannually. Dale would like the account to have a balance of $50,000 five years from now. How much must Dale deposit to accomplish her goal? Choose closest answer. A) $35,069. B) $43,131. C) $37,205. D) $35,000. PV 10pds 3% .7441 ,PV 10pds 6% .86262, PV 5 pds 6%, 7018 PV 5 pds 3% .7000Problem 10. A local businessman has set up a school fund that will last forever that can earn 3.1% compounded monthly. How much. money do you have to deposit today in order to be able to provide three annual 10,000 scholarships, each to be paid at thebeginning of the year?Q3…Abbigail wish to establish a trust fund from which her daughter can withdraw $6,000 every six months for 15 years, when she reach 16 years old. At the end of which time she will receive the remaining money in the trust, which you would like to be $25,000. The trust will be invested at 6% per annum compounded semi-annually. How large should the trust be? Q4…It is now January 1, 2018. You plan to make 5 deposits of $200 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 10%, but uses semi-annual compounding, how much will be in your account after 8 years?
- CH9HW i Help Save & Exit Submit a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $140,000 in a savings account on January 1 of this year. The savings account will earn 8 percent annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). b. At the end of each year, a different friend, Claire, plans to deposit $10,400 in a savings account. The account will earn 11 percent annual interest, which will be added to the fund balance at year-end. Claire will make her first deposit at the end of this year. (FV of $1, PV of $1, FVA ofQUESTION 2 If you planning to invest some funds in the following manner; K20,000 at the end year 1,K30,000 at the end of year 2 and K10,000 at the end of year 3.How much would this account have at the end of year 4 assuming the funds earn interest of 12% compounded per annum You have inherited two endowment funds from your grandfather. One fund will pay K30, 000.00 annually indefinitely, while the other fund will pay K12, 000 annually for 20years.The insurance company has offered to buy this fund from you. Calculate the combined market value on such fund if interest were 18% in the market. An investment company offers an account which requires a one off investment of K18, 000.00 and grows to K237, 870.00 in 12 years time. Find the interest rate that the investment is offeringNOTE: DONT USE EXCEL 2. Ms. Pan Aram has set the goal of accumulating Php 4,000,000 for her son's college fund, which will be needed 18 years in the future. Her investment agent advises her that she can deposit today to Bank X that earns 8% annual interest. a. Option A: How much she needs to deposit today in the bank? b. Option B: If she will be depositing an equal payment of Php 107,000 per year for 18 years at 8% annual interest, how much is the future value? c. Which is the better option Ms. Pan should decide? Why?
