A mother wishes to put enough money in a fund today for her son to attend college starting in 10 years. How much money must she invest today at 5% ?interest to provide $15,000 per year for the 4 years

Q: What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it…

A: Two questions appear on the board. They are unrelated and are not sub parts. Hence, only the first…

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: New parents wish to save for their newborn's education and wish to have $46,000 at the end of 17…

A: Computation of yearly payment:Hence, the yearly payment is -$1,682.02.

Q: How much money must you deposit in an account each year to fund your children’s education? Your…

A: Information Provided: College expenses = $45,000 Interest rate = 5%

Q: Parents have set up a sinking fund to have $180000 in 15 years for their child's education. How much…

A: Given information: Sinking fund (FV) = $180,000 Period (NPER) = 15 years Interest rate (rate) =5.2%…

Q: New parents wish to save for their newborn's education and wish to have $40,000 should the parents…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: James wants to buy a car in 5 years. The car is expected to cost $30,000 at that time. How much…

A: The amount required to invest today can be calculated as the present value of lump sum

Q: . How much should you deposit monthly to accumulate $85,000 in 15 years?

A: Future Value of Annuity: It represents the future worth of current annuity payments made…

Q: Anna's son, Steven will start college in 5 years. Tuition costs $29,000 today, increasing at an…

A: Data given:: Tuition costs today = $29000 Annual growth rate in tuition = 5.7% Interest rate on…

Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Initial investment = $10,000 Period = 18 years Interest rate = 0.1024  Accumulated amount = ?

Q: A newborn child receives a $7,000 gift toward a college education from her grandparents. How much…

A: Inerest rate (decimal form) = Interest rate100=5%100=0.05   Quarterly interest rate (decimal form)…

Q: New parents wish to save for their newborn's education and wish to have $45,000 at the end of 16…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18…

A: Given  P=$37,000 r= 7.8% n=1 t=18 years

Q: How much money should Abigail invest today into a fund that earns interest at 3.75% compounded…

A: Since interest rate is compounded quaterly and payment of annuity is made semi annually, we need to…

Q: Michael’s child is going to college in 13 years. If he saves $ 7,000 a year at 9% compounded…

A: Future Value: A present asset's future value, abbreviated as FV, is the value that an asset is…

Q: Taurus needs P 4,000 per year for four years to go to college. His sugar mama invested P 5,000 in 7…

A: The worth of money changes with time, therefore the TVM considers the value of money according to…

Q: You would like to have $200,000 in a college fund in 15 years. How much do you need today if you…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: Your daughter is currently 10 years old. You anticipate that she will be going to college in 8…

A: Here we will use the concept of time value of money which states that money deposited today in an…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: Future value required (FV) = $ 200,000 Interest rate = 5% Monthly interest rate (r) = 5%/12 =…

Q: What lump sum do parents need to deposit in an account earning 11%, compounded monthly, so that it…

A: Given: Interest rate = 11% Future value = $90,000 Years = 16 Compounding is monthly

Q: Mr. J. J. Parker is creating a college fund for his daughter. He plans to make 15 yearly payments of…

A: GIVEN, YEARLY PAYMENT = $1500 N = 15 YEARS R = 12% LET FOUR YEARLY WITHDRAWAL = A  withdrawal from…

Q: To pay for your child’s education, you wish to have accumulated $25,000 at the end of 15 years. To…

A: Future Value refers to compounded value of present amount or a series of equal amount of payment…

Q: To fund their child's college expenses, a family plans to invest $540 to a bank account at the end…

A: This is in the form of a growing annuity where the initial amount is 540 G = 12% (growth rate) and r…

Q: Susan Orman wants to pay $1,500 semiannually to her granddaughter for 10 years for helping her…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Kate Eden received a graduation present of $2,000 that she is planning on investing in a mutual fund…

A: Excel Spreadsheet:

Q: On January 1, Alan King decided to transfer an amount from his checking account into aninvestment…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…

A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…

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

A: Present Value  Present value is the present worth of any sum of a money to be received in the future…

Q: Mrs. Christell Lee deposited Php50,000 now in an account for the college education of her 3-yeard…

A: Future value from present value concept is used to determine the value of deposits before starting…

Q: What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: You are saving for the graduation (4 years) of your two children. They are two years apart in age;…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A mother is thinking about funding her daughter’s medical education in 6 years when she is expected…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they…

A: To calculate the deposit amount we will use the present value formula as follows:   Deposit amount =…

Q: A father has saved money in a fund to finance his son's 4-year university program. The fund pays out…

A: Quarterly Compounded Rate = 8% Number of compounding periods = 4   Withdrawals or Payouts: 300…

Q: You are saving for the university education of your two children. They are two years apart in age;…

A: Deposits should be made to make the university expenses for both children. Hence, first present…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

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

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

A: Savings refers to money put aside for some specific work or for emergency needs. Saving is used to…

Q: Starting next year, Moussa Al Khatib will need $10,000 annually for 4 years to complete his…

A: Given information: Amount needed in next year $10,000 Number of years 4 Interest rate is 5%.

Q: You need P4,000 per year for four years to go to college. Your father invested P5,000 in 7% for your…

A: Value of father's investment at 17th year is the future value of money at 17th year. It is given by…

Q: A young couple wants to have a college fund that will pay $35,000 at the end of each half-year for 8…

A: Here, Required Amount in every six months for 8 years is $35,000 Interest Rate is 6% Time Period for…

Q: Aunt Zelda’s son starts college in 5 years for which she will need $15,000 payable at the end of…

A: Aunt Zelda will buy an annuity at the beginning of year 5 that will pay $15000 for college at the…

Q: Your cousin is currently 13 years old. She will be going to college in 5 years. Your aunt and uncle…

A: Given,  Amount required at the end of year 5 = 115,000 Interest = 3.6% per annum  Time period = 5…

Q: In order to save for her high school graduation, Marie decided to save ₽200 at the end of each…

A: Note: “Since you have asked multiple questions, I will solve the first question for you. If you want…

Q: An electrical engineer who is anticipating paying for his daughter’s college education plans to…

A: Calculate the future value of the deposits by using the EXCEL FV function as follows: Working:…

Q: A family want to have a $241,000.00 higher education fund for their children at the end of 22 years.…

A: The calculation is:

Q: A mother wishes to set up a savings account for her son's education. She plans on investing $750…

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

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

A: In finance, a series of cash flows at equal time intervals for a specific period is known as an…