Assume the total cost of a college education will be $359,000 when your child enters college in 15 years. You presently have $74,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (Do not round intermediate calculations and enter your answer as a percent rounded  to 2 decimal places, e.g., 32.16.)

Q: Parents wish to have $110,000available for a​ child's education. If the child is now 99 years​ old,…

A: If P is the amount set aside today, then it's future after year n, in an account offereting annual…

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: You expect to receive $25,000 at graduation in two years. You plan on investing it at 9 percent…

A: Let's say we have to wait for n years once you get the money at graduation, which itself is two…

Q: Assume the total cost of a college education will be $385,000 when your child enters college in 15…

A: Using excel Rate function

Q: An engineering student decides to accumulate $500,000 by her sixt pects to start by investing a…

A: Explanation of Concept:-  Annual worth concept which is been used in the present problem states that…

Q: Matilda is planning for her daughter’s university education to begin five years from today. She…

A: PRESENT VALUE OF ANNUITY: PVA=A×1-11+rnr where, A=annuity r=rate of interest n=number of years

Q: If it cost $50,000 to attend a public university today, what would it cost to attend that same…

A: Future value can be defined as the monetary value of an asset on an individual date in future…

Q: 6. Calculating Rates of Return Assume the total cost of a college education will be $235,000 when…

A: Annual rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value = $235,000…

Q: In order to pay for college, the parents of a child invest $10,000 in a bond that pays 6%…

A: Investment (P) = $ 10,000 Interest rate= 6% Semi annual interest rate (r) = 6%/2 = 3% Period = 20…

Q: Assume the total cost of a college education will be $355,000 when your child enters college in 16…

A: interest rate is calculated using RATE function in excel We need to find interest rate at which…

Q: If your daughter is 5 and she plans to go to college or university in Canada when she is 18 years…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: When your first child is born, you begin to save for college by depositing $500 per month in an…

A: The calculation is: Note: Concept utilized: 2.71828182 is a numerical constant value.

Q: Sam Long anticipates he will need approximately $225,000 in 15 years to cover his daughter's college…

A:

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

A: Present value of the fees for each of the 2 kids is calculated.Kid 1 (elder kid enters collect after…

Q: You are scheduled to receive $15,000 in two years. When you receive it, you will invest it for six…

A: Given,Money Received after 2 years and Present Value of the investment for 6 years (PV) =…

Q: A couple wants to save for their daughter's college expense. The daughter will enter college eight…

A: Calculation of annual cash flow from savings plan: Answer: A couple must save $13,254.85 each year…

Q: Assume the total cost of a college education will be $365.000 when your child enters college in 18…

A: given, future value = $356,000 present value = $59,000 n = 18 years

Q: Assume the total cost of a college education in Singapore will be SGD 250,000 when your child enters…

A: Annual rate of interest is the rate at which the interest amount is provided on the principal amount…

Q: You have saved $120,000 for your child to attend college. If it is in an account earning an annual…

A: Using excel PMT function

Q: Assume the total cost of a university education will be €290,000 when your child enters college in…

A: Future value = Present Value * (+rate)^No. of periods

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Given: Future value = $300,000 Present value = $60,000 Interest rate = ? Years = 18

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: to pay his son’s university tuition fees for 4 years starting 18 years from now. The current annual…

A: There is need of planning for the future cost of education because compounding increase value of…

Q: You plan to send your first born child for a 4-year degree with 4 annual payments. Your first…

A: According to the time value rule, a sum of money today can earn an interest amount by investing it…

Q: Assume the total cost of a college education will be $245,000 when your child enters college in 15…

A: Amount we have (present Value) is $108,000 Required Amount after 15 years (Future Value) is $245,000…

Q: ackis planning for his son's college education to begin eightyears from today. He estimates the…

A: First we need to calculate the present value of an ordinary annuity in year 7 as the withdrawal…

Q: Assume the total cost of a college education will be $340,000 when your child enters college in 18…

A: Computation:

Q: You anticipate your child will start college in 18 years. You decide to place $4,732 each year into…

A: Number of years (n) to college = 18 Annuity (P) amount of $4,732 for 18 years Interest rate ( r ) of…

Q: Assume the total cost of a college education will be $365,000 when your child enters college in 18…

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

Q: When your first child is born, you begin to save for college by depositing $600 per month in an…

A: Annuity means number of payments which are equal in size and made at equal interval of time. Person…

Q: A family wants to have a $160,000 college fund for their children at the end of 15 years. What…

A: Using excel PMT function

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: When your first child is born, you begin to save for college by depositing $225 per month in an…

A: Future value is calculated by multiplying the present value with the 1+r factor for the given rate…

Q: If the average college tuition cost is $40,000/year currently to go to college, what will it cost…

A: Step 1 Inflation is the aggregate level at which prices for goods and services are increasing.

Q: Currently (in August, 2021), Abby wants to have $20,000 available in August 2025 to make a college…

A: Future Value: The future value is value of present amount compounded at an interest rate until a…

Q: Assume the total cost of a college education will be $345,000 when your child enters college in 18…

A: The question is based on the calculation of required rate of return in future value of money…

Q: Assume the totol cost of a college educotion will be $200,000 when your child enters college in 16…

A: Future value required (FV) = $ 200,000 Investment amount (PV) = $ 55,000 Period (t) = 16 Years

Q: What annual rate of interest must you earn

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: (Quantitative Question) Suppose that a young couple has just had their first baby and they wish to…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Assume the total cost of a college education will be $200,000 when your child enters college in 15…

A: future value formula: future value=present value×1+rn where, r=rate n=number of years

Q: Assume the total cost of a college education will be $380,000 when your child enters college in 16…

A: Future Value = Present value * (1+rate)^n Where, n = no. of years

Q: Assume your child will enter college in 10 years. The total cost of a college education is estimated…

A: Details given in the question are as follows: Invest today (Present value) = $10000 Time period = 10…

Q: Assume the total cost of a college education will be $365,000 when your child enters college in 18…

A: Value of money declines with the time. Compounding and discounting are two techniques to consider…

Q: Your brother will begin his education this year. The university tuition is TL37420 per year and paid…

A: The present value of annuity due is the present value of a series of cash payments that are expected…

Q: Assume the total cost of a college education will be $360,000 when your child enters college in 15…

A: Future value required (FV) = $360,000 Present value (PV) = $58,000 Period (n) = 15 Years

Q: Assume the total cost of a college education will be $250,000 when your child enters college in 17…

A: Using excel RATE function