A father wants to save money to pay for his son’s college education. He is depositing equal amounts of money every year at the end of each year in an account to have $120000.00 after 18 years. If the interest rate on the account is 5% compounded continuously, how much should he deposit each year? a)  $3554.62 b)  $3700.60 c)  $4215.21 d)  $3512.71

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A: Future Worth is value of current amount at future point of time. It is computed by compounding that…

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A: The formula to compute present value is as follows:

Q: present value of the tuition fees

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A: Future Value: The future value is the amount that will be received at the end of a certain period.…

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A: Simple interest is the interest paid to the lender on the amount borrowed. It is calculated by…

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A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

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

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A: “Since you have posted a question with multiple sub-parts, we will solve the three sub-parts (4,5,6)…

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A: Present Value: It is the current worth of a future amounts of cash  given a predetermined pace of…

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A: In this, we have to calculate the present value of annuity today.

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A: Solution:- When an equal amount is deposited or withdrawn each period, for a number of periods, it…

Q: A professor invested some money for college expenses for his grandson. He invested $10,000 into an…

A: Required :Determine the amount in the account after 18 years.

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A: Present value of annuity due would be provided the current value of an amount which is accumulated…

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A:

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A: given, FVA= P 150,000 N = 18  R= 6% LET ANNUAL DEPOSIT = A

Q: Bozo the clown decides to start saving money. So, every month he deposits $200 into an account which…

A: because you have posted multiple questions we will answer the first question Only, for the remaining…

Q: per year for four years to go to college. Your father invested P16300 per year in a 10.163% account…

A: You must do proper planning for the future that must be done on time and within interest rate so…

Q: 4. Rodel decided to sell their farm and to deposit the fund in a bank. After computing the interest,…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

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Q: Assume today is 1 September, and this is the birthday of your two children, Ashley and Alex. Ashley…

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A: Formulas:

Q: 1. Prior to starting college, Rita Rivera's parents deposited $15,000 in a 5-year certificate of…

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Q: This month you want to give your son $500.00 to help pay for University. You plan to make these…

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.