Assume the total cost of a college education will be $365.000 when your child enters college in 18 years. You presently have $59,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?

Q: ur client has asked you what would be needed to fund your 2 children’s future college costs. Assume…

A: Future planning is needed for the education of the children and you have to save for that.

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

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

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: . 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: You are saving for the college education of your two children. One child will enter college in 5…

A: Present value of annuity formula along with future value of annuity formula is used to calculated…

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

A: Time value tells that money received today is of more value than that of receiving the exact value…

Q: William Jack and Sophia Rose are planning on their first child education. If they expect  that…

A: College cost after 18 years = RM 150000 Number of deposits (n) = 18 r = 6% Let the annual deposit =…

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: o prepare for his son's college education, a man plans to make monthly deposits of Php2000 for…

A: Monthly deposit (P) = Php. 2000 Number of monthly deposits (n) = 60 Interest rate = 12% Monthly…

Q: You have an absolutely brilliant child who will be attending a private college in 11 years. You know…

A: Data given: Cost of 4 year college  = $15000 per year. n=11 years  Increase in rate= 4%   Required :…

Q: college fund. It the total cost of education will be $325,000 and you want to have this amount when…

A: Information Provided: Present value = $55,000 Future value = $325,000 Term = 16 years Payment = $0

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: 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: When your first child is born, you begin to save for college by depositing 100  per month in an…

A: Future value = Present value * eRate of interest * Time Where e = 2.71828

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

A: Annuity means a series of finite no. of payments which are same in size and made in equal intervals.…

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: An enterprising student is planning to have personal savings totaling $1,000,000 when she retires at…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

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

A: Future value is the value of assets at a future date for a given growth rate. It is given as: FV =…

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: 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: (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 $359,000 when your child enters college in 15…

A: Given, Amount required $359,000. Number of years 15 Amount available for investment is $74,000.

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: 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

Q: A couple will retire in 40 years; they paln to spend about $23,000 a retirement, which should last…

A: The stream or series of payments that are to be made at specific time intervals is known as annuity.…