A father wishes to provide P4,000 for his son on his 21st birthday. How much should he deposit every 6 months in a savings bank which pays 3% compounded annually, if the first deposit is made when the son is 3 years old?

Q: Your uncle Mohammed is celebrating his 33th birthday today and wants to start saving for his…

A: Annual deposit that needs to be deposited by uncle every year if he starts to deposit from this year…

Q: A man wants to set up a 529 college savings account for his granddaughter. How much would he need to…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: On the birth of a child, the father wants to deposit a sum in a savings account. He intends to…

A: Sum Deposit = ? 20,000 every month for 4 years starting on 18th birthday Interest Rate = 10%…

Q: c). If the father decides to deposit a single amount now instead of K300 at the end of each month,…

A: Data given: FV= k 24,500.90 [as computed in (a) ] r=12% p.a. (assumed compounded annually) n= 17-12…

Q: Pedro deposits a sum of money in Metrobank for Juan. He wants Metrobank to send Juan checks of P…

A: 1.  There are 10 years to go till age 16. 2. Since the first payment is going to be done at age 16,…

Q: On your child’s 1st birthday, you open an account to fund his college education. You deposit $300 to…

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

Q: 1. Abbigail wish to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a…

A: FV Ordinary Annuity=C×(1+i)n−1i where, C=cash flow per period i=interest rate=0.1512…

Q: A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a…

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

Q: If Mr. X wants to retire at an age of 56 and he wants to accumulate in his bank account at that time…

A: Individuals save for retirement using various investment instruments in order to have sufficient…

Q: Your friend is celebrating his 25th birthday today and wants to start saving for his retirement at…

A: Annual withdrawal = $ 100,000 Annual interest rate = 6% Number of withdrawals = 20   As per formula…

Q: Suppose a child's parents decide to make annual deposits to a savings account, making the first…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

A: Present Value annuity- The present value of an annuity is the present worth of future outflow from…

Q: On your 21st birthday you receive $10,000 as a result of a deposit that your grandparents made on…

A: Simple interest is one of the easy method of calculation of interest amount. Simple interest is…

Q: 1:Kaitlyn wants to set up a fund for his son's education such that he could withdraw $2,050.00 at…

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

Q: 4. A child has a savings account in which the same amount is deposited every year. The first payment…

A: Given: Future Value =20,000 Number of payments from 0 to 18 years = 19 Interest rate = 2.3% Tax at…

Q: (Refer to this word problem. , Samuel wishes to have P500,000 available for his son's college…

A: Accumulated value (F) = P 500000 t = 14 years = 28 semiannual periods r = 4.4% per annum = 2.2%…

Q: Ed wants to have $30,000 in 20 years. He opens a savings account in a bank which pays 7.2% interest…

A: Interest - The sum that the borrower pays to the lender above the principal amount and is fixed at a…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

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

Q: Bob has $2,500 invested in a bank that pays 1% annually. How long will it take for his funds to…

A: A fund is a collection of money set aside for a certain purpose. A fund can be formed for a variety…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

A: Initially, it is required to calculate value of money required at 18,19,20 and 21st birthday at 17th…

Q: (Refer to this word problem Samuel wishes to have P500,000 available for his son's college…

A:

Q: A father wishes to provide P4,000 for his son on his 21st birthday How much should he deposit every…

A: Given  P4000 (amount father wishes to give to son)  Deposit to be done for 5 months  Semi annual…

Q: Andrew wants to open an account for his grandson that he hopes will have $30,000 in it when he turns…

A: Future value is the amount received at the end of a certain period for the investment made in the…

Q: A couple wants to begin saving money for their daughter's education. $16,000 will be needed on the…

A: The present value of the annuity is the current worth of a series of cash flows at a certain rate of…

Q: Suppose you want to save money for your child's college expenses. You deposit $1,000 at the…

A: Future value of an annuity due is defined as the formula, which used to get calculated the end value…

Q: A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter…

A: The investor must have an approach to invest their funds based on goals-based investment i.e. they…

Q: A young engineer wants to provide his newly born daughter a lump sum of P 2.0M when she graduates…

A: Future value required (FV) = P 2,000,000 Period = 21 Years Number of monthly payments (N) = 21*12 =…

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: how much is the 3rd investment?

A: Monthly interest rate  1st deposit = 6.5%/12 ; time=11×12=132months 2nd deposit = 7.3%/12 ;…

Q: Your uncle Mohammed is celebrating his 33th birthday today and wants to start saving for his…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A father wants to save money to pay for his son’s college education. He is depositing equal amounts…

A: Given, Amount required $120,000. Term 18 years Rate 5%

Q: (Refer to this word problem. Samuel wishes to have P500,000 available for his son's college…

A: Here we have to find the present value so that P 500,000 is available after 14 years.

Q: If your uncle starts making these deposits on his 33th birthday and continues to make deposits until…

A: Saving account is the account which offers interest to the investors. The interest rate on savings…

Q: As a savings program toward their child’s college education, parents decide to deposit 100 dollars…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: On a boy's seventh birthday, his parents deposited 5,000 in his name in a savings bank paying 2%…

A: Deposit amount (PV) = 5000 Quarterly interest rate (r) = 2% Period from 7th birthday to 21 days  =…

Q: A man wishes to set aside some money for his daughter’s college education. His goal is to have a…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: Laura wants to accumulate RM150, 000 in her bank account by depositing RM1000 at the beginning of…

A: The Future value of annuity due is the total future value of each cash flow which is made at the…

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: A man deposited P5,000 on the date his son celebrated his 1st birthday. If money is worth 10%…

A: Future value : The value of a current asset at a future date based on an anticipated rate of growth…

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = P28000 NOMINAL RATE = 5.5% INFLATION = 8.7% N = ( 18-5) = 13 YEARS

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = 28000 NOMINAL RATE = 512%=5.5% inflation = 8.7% n = 13 years ( 18-5)

Q: Your uncle Mohammed is celebrating his 33th birthday today and wants to start saving for his…

A: Future value of an ordinary annuity computes the total amount of periodic payments at a certain time…

Q: A father wishes to provide P4,000 for his son on his 21st birthday. How much should he deposit every…

A: When the deposit is intended to be made every six months, it means that interest rate will be…

Q: A.) Mr. Jones has P 1,000,000 that he wishes to distribute to his son at a rate of P 100,000 per…

A: A) Amount to distribute (X) = P 1,000,000 Annual distribution (A) = P 100000 r = 4% Let n = Years to…

Q: Sali would like to send her parents on a cruise for their 25th wedding anniversary. She has priced…

A: Annuity means where regular payment is made at the end of regular period and full amount with…