A man invests P 20,000 now for the college education of his 2 year old son. If the fund earns 10% effective, how much will the son get each year starting from his 18th to the 22nd birthday?
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- A rich donor gives a hospital $950,000 one year from today. Each year after that, the hospital will receive a payment 6% larger than the previous payment, with the last payment occurring in ten years' time. What is the present value (PV) of this donation, given that the interest rate is 10%?Question 888 M A mining company CEO wants to help provide college education for the daughter of a high performance underground worker. He can afford to invest $750/yr. for the next 4 years, beginning on the student’s fourth birthday. He wishes to give the future student $5,000 on her 18th, 19th, 20th, and 21st birthdays, for a total of $20,000. Assuming 6% interest, what uniform annual investment will he have to make on the girl’s 8th through 17th birthday? show all steps clearly Full explain this question and text typing work only thanksLiam dreams of starting her own business to import consumer electronics products to the country. she estimates she can earn 12% of her investment and that she will need to have $300000 at the end of year 10 if she wants to give her business a good solid foundation. she now has $28850 in her account in her account, and she believes she can save 12000 dollars each year from her income, beginning now. She plan to marry at about the end of year 6 and we'll keep the investment contribution that year. How far below or above her 300,000 dollars goal will he be?
- A mom would like to open a savings account for her new born son's university education. Her plan is to deposit $5,000 at the end of each year for 18 years. From her job, she is expecting a promotion bonus of $4,000 at the end of 8 years that she can deposit directly to her son's university fund. However, she needs to get a new car 5 years from now with a down payment, so she realizes she cannot save any money for her son's university fund during that year. If the underlying savings account pays 8% interest compounded annually, how much money would her son have in this account at the end of 18 years? Please show all steps!!A) If a company will pay $100,000 for a truck that will increase deliveries to be made, giving an additional $15,000 in revenue each year for 10 years, should the company buy it? Interest rates are 5%. B) Now revenue is estimated to be only $12,000 a year for 10 years. Same interest rate, should the truck be purchased?Please no written by hand solutions When a child is born, the parents receive gifts of $5000 which they invest at 6% interest. Each year they are fortunate to receive $1000(1+f/5) in gifts that they add to the investment. When the child is 18, he is allowed to remove the money from the account. How much is there? f = 3, so $1600 is added to the gift each year.
- A person invested ¥10,406.8 when his son was 7 years old, ¥17,627.21 when he turned 8, and ¥18,860.3 for the next 5 years. If the interest rate is 0.195, how much will his son receive annually starting on his 26th birthday? *Final answer in 4 decimal places. Thank youAt 2% interest rate, how much should you invest today to be able to withdraw 2,958 annually for 5 years it payments are done every beginning of the month?As a rental for a building, the owner received two offers:(A) P50000 a year for 8 years, the rental for each year paid at the start of the year(B) P30000 the first year, P40000 the second year, P50000 the third year, and P60000 forthe next 5 years with all rentals paid at the beginning of each year.If money is worth 12%, which is the better offer?
- 7. Find the PV of $1000due in 5 years if the discount rate is 10% per year. (Assume this is a single payment not an annuity).Green and Gold Industries sells 3 products. The sales are expected to increase every year as shown over the next 5 years. For the rate of interest given, what is the FV of the total sales revenue? Product A Product B Product C Rate 1st years sales $200,000 $150,000 $50,000 6% Increases per yr 5% 10% $15,000 A. $2.7 Million B. $220,500 C. $2.3 Million D. $243,101John is assessing whether a more efficient motor with a life of 10 years should be installed on aproduction line. If the interest rate is 10%, what is the present value of the energy savings?(a)Energy savings are projected at $16000 for the first year, then increasing by 7% annually.(b)What if the energy savings are increasing by 10% annually?