Chasity and Garrett plan to send their son to university. To pay for this they will contribute 9 equal yearly payments to an account bearing interest at the APR of 2.6%, compounded annually. Six years after their last contribution, they will begin the first of five, yearly, withdrawals of $59,800 to pay the university's bills. How large must their yearly contributions be? %$4 Submit Question %24

Q: Kim's daughter is about to start kindergarten in a private school. Currently, the tuition is $20,000…

A: A savings account is a deposit account that pays interest and is held at a bank or other financial…

Q: Alicia and Warren plan to send their son to university. To pay for this they will contribute 12…

A: Let the annual contribution  = A Annual withdrawal (W) = $39900 r = 4.5% per annum We need to find…

Q: Briana received a 10-year subsidized student loan of $26,000 at an annual interest rate of 4.125%.…

A: In student loan, loan payment is deferred till completion of studies but interest gets due for same…

Q: Willie deposits a fixed monthly amount into an annuity account for his child’s college fund. He…

A: Here, to calculate the monthly contribution we have to use the formula of future value of annuity.…

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

A: Annuity is type of financial instrument (insurance contract) in which you pay certain amount…

Q: Harry and Lisa Perry have agreed to pay for their granddaughter's college education and need to know…

A: Given information:  Annual interest rate is 4% Annuity payment is $25,000 Number of years is 5

Q: With the scholarship and his family's contribution, for how many years of college will be paid:…

A: Financial planning refers to a process of planning finances by an individual to identify their…

Q: Jennifer establishes an investment account to pay for college expenses for her daughter. She plans…

A: Future value of 4 withdraws  of $66000 can be calculated by following formula FV (rate, nper, pmt,…

Q: Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The…

A: The present value refers to the current value of the amount to be received in a lump sum in the…

Q: Keith Stone has a 10-year-old daughter, Kate, who will be entering college in 8 years. Keith…

A: Time value of money is a concept that helps in determining the value of cash (or money) at a future…

Q: Upon graduation, Terrence purchases a home theatre system through financing $5,000 by his credit…

A: Repaying a credit card bill: A charge on the credit card bill does not carry any interest if the…

Q: A father has saved a fund to provide for his son'S 4-year university program. The fund will pay…

A: The time worth of cash draws from the possibility that reasonable financial backers like to get cash…

Q: Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They…

A: As per the given information: Amount = $40,000Annualized rate of return (r) = 8%No. of years (n) =…

Q: Norm Legend has been awarded a scholarship from Canmore College. For the next 10 years, he will…

A: Amount to be set aside now = Present value of annual payment where, Present value of annual payment…

Q: Mary takes out a 20-year loan of $10,000. She repays her loan using the sinking fund method. She…

A: Sinking fund: It is a fund maintained by a company in which only interest payments are made during…

Q: Kori and Ben plan to send their son to university. To pay for this they will contribute 9 equal…

A: We first need to find the PV of annual withdrawals, assuming that withdrawals are made at the end of…

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: Allain Dupre wants to set up a scholarship fund for his school. The annual scholarship payment is to…

A: Using excel PV function

Q: While in college, Ellen received $40,000 in student loans at 8% interest. She will graduate in June…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: On the day your daughter is born, you deposit $1,000 in a college savings account that earns 8%…

A: Ordinary annuity accepts regular annuity payments at the end of each period which can be annually,…

Q: Danny Metzeger's parents invested $1700 when he was born. this money is to be used for Danny's…

A:

Q: Janet's parents want her to go to the same college that they did. They decided to pay a lump sum…

A: Lump sum Payment as on today (PV)=$126,000 Duration (n)=8*4=32 periods Rate per period (i)=6%4=0.015

Q: (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They…

A: Introduction Sinking Fund A sinking fund is an account earning compound interest into which you make…

Q: A father has saved a fund to provide for his son's 4-year university program. The fund will pay…

A: To calculate value of fund, present value of annuity formula will be used. Value of fund will…

Q: Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The…

A: An annuity is defined as the series of payment made each year for a definite period of time. In…

Q: This month you want to give your daughter $2,000.00 to help pay for University. You plan to make…

A: Provided a certain rate of interest, present value is current value of future amount of money or…

Q: Harry and Lisa Perry have agreed to pay for their granddaughter's college education and need to know…

A: present value of annuity=A×1-11+RNR A=annuity r=rate of interest n=number of years

Q: A professor has two daughters that he hopes will one day go to college. Currently, in-state students…

A: Since, first payment of fees starts at 16th year and we are given fees at current money value, so…

Q: New parents wish to save for thier newborn's education and wish to have $36,000 at the end of 18…

A: The computation of yearly payment and interest as follows: Working note: Hence, the interest is…

Q: Jack made monthly contributions of $200 to his son's RESP for a total of 12 years. The contributions…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: At the beginning of every 3 months , college student deposits P300 in a fund that gives 12%…

A: Quarterly payment (P) = P 300 Annual interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3%…

Q: A grandfather agrees to start contributing $2,500.00 to an educational savings account starting with…

A: Future value is the expected value of present sum at a future date, at a given rate of interest.…

Q: Danny Metzger's parents invested $1700 when he was born. This money is to be used for Danny's…

A: Future value is the value of present cashflow at future date compounded at specified rate. formula:…

Q: Danny Metzger's parents invested $1700 when he was born. This money is to be used for Danny's…

A: FUTURE VALUE Future value is the future worth of a cash flow at a certain rate of interest and time…

Q: To help pay for an estimated $35000 in college expenses, parents make a deposit into a college fund…

A: The question is based on the concept fixed periodic payment to accumulate a desirable fund in…

Q: Brooke and Collin plan to send their son to university. To pay for this they will contribute 10…

A: The PMTs done at the end of each period are ordinary annuity.

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

A: The present value of a future amount can be calculated by using this equation Present value =Future…

Q: Tiffany and Levi plan to send their son to university. To pay for this they will contribute 9 equal…

A: We will first have to find the value of the five annual withdrawals at the beginning of the…

Q: Madison and Colton plan to send their son to university. To pay for this they will contribute 12…

A: Given information: Contribute 12 equal yearly payments APR is 4.9% Withdrawals of $34,000

Q: Find the amount that will be available each year, if money is worth 6%, compounded annually

A: Time value of money(TVM) means that the amount of money received in the present period will have…

Q: A father wants to set aside money for his son's future college education. Money can be deposited in…

A: The question is based on the concept of Financial Management.

Q: Jennifer establishes an investment account to pay for college expenses for her daughter. She plans…

A: Given: Effective interest rate = 11% Annuity is the regular payment to be made at a regular…

Q: Norm Legend has been awarded a scholarship from Canmore College. For the next 4 years, he will…

A: Quarterly payment (P) = $ 4400 Interest rate = 7% Quarterly interest rate (r) = 7%/4 = 1.75% Period…

Q: A person decides to pay at the beginning of each semester for 6 years the sum of $3315. Calculate…

A: The interest rate is the rate at which the specific amount is accumulated at the end of the period…

Q: ou annually invest $1,500 in an individual retirement account (IRA) starting at the age of 30 and…

A: The future value concept can be used to determine the future value of a future sum, or the future…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.