Assume the totol cost of a college educotion will be $200,000 when your child enters college in 16 years. You presently have $55,000 to Invest. What onnual rote of Interest must you earn on your investment to cover the cost of child's college education? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 dacimal places, a.g., 32.16.) your Annual rate of interest

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 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: a. How much money will your parents have at the end of four years to help you with graduate school,…

A: Answer A: Computation of present value using a financial calculator: N = 4 I/Y = 6% PMT = $10,000 FV…

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

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A: The Tuition fees for 2 years is 10,000 which is assumed to be paid in day 1. Monthly income will be…

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: 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: 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: 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: Jose Oliva is considering two investment options for a $1,500 gift he received for graduation. Both…

A: Given information is: Jose Oliva is considering two investment options for a $1,500 gift he received…

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: Sam Long anticipates he will need approximately $226,800 in 15 years to cover his 3-year-old…

A: Present value refers to the current worth of the amount for the future expected cash flows at given…

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: A financial planning service offers a college savings program. The plan calls for you to make six…

A: Annual Payment = 14000 Time Period = 6 years Beginning of period payments   Future Value = Sum 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: save for her newborn son S college education, the beginning of each year for the next 18 years. The…

A: Please refer to the image belowp

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: 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: 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: 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: Sam Long anticipates he will need approximately $227,000 in 11 years to cover his 3-year-old…

A: Given, Amount (FV) = $227,000 Time (t) = 11 years Interest rate (i) = 10% Compounded - Semi annually…

Q: Your friend already has $20,000 in an investment account. In addition to this amount, she is…

A: Given Information: Amount in investment account - $20,000 Additional amount invested at the end of…

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: at the end of each of the following 6 years (t= 5, 6, 7, 8, 9, and 10). Their investment account is…

A: Annuity is a series of equal instalments at equal intervals of time. The present value of an annuity…

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: Suppose it costs $18,000 per year (in early 2014 dollars) for tuition, room, board, and living…

A: given data  cost = $18000  a) inflation average per year = 8% total cost of a four year education…

Q: Sam Long anticipates he will need approximately $225,000 in 15 years to cover his 3-year-old…

A: Given: Future value = $225,000 Years = 15 Interest rate = 8% Compounding = Semi annually

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

A: Given information :  Amount Required at the end of 18 years = RM 150,000 Annual rate of return = 6%…