Colin has inherited $6,000 from the death of Grandma Anna. He would like to use this money to buy his mom Hayley a new scooter costing $7,000 two years from now. Will Colin have enough money to buy the gift if he deposits his money in an account paying 8 percent compounded semi-annually?

Q: Ethan wants to set up a fund for his son's education such that he could withdraw $2,982.00 at the…

A: Quarterly withdrawals (P) = $2,982.00 Period = 6 Years Quarterly period (n) = 6*4 = 24 Interest rate…

Q: Your grandfather wants to establish a scholarship in his father’s name at a local university and has…

A: The question is based on the concept of present value of perpetual fixed income. The present value…

Q: At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If…

A: In finance, a trust is considered as an arrangement between a third party, a trustee, and the…

Q: Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years…

A: Future value required (FV) = $150,000 Interest rate (r) = 6% Number of annual payments (n) = 18…

Q: George buys a car every 6 years for ₱18,000. He trades in his current car to count as the 20%…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Palma wants to establish a fund for her granddaughter's college education. What lump sum must she…

A: Computation:

Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…

A: The question is related to the annuity due. The details are given. The present value of annuity due…

Q: . Your grandmother has established a trust fund that pays you $3,500 each year for 15 years. upon…

A: Given: CF=$3500t=15 yearsr=7% i.e 0.07

Q: Your friend is celebrating his 25th birthday today and wants to start saving for his retirement at…

A: Annual withdrawal = $ 100,000 Annual interest rate = 6% Number of withdrawals = 20   As per formula…

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

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

Q: Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to…

A: Future value:

Q: Marryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…

A: Future value represents the future worth of existing cash flows. It is determined by compounding…

Q: Jenna owns a jewelry business, and she plans to save $500 every month for 3 years to buy precious…

A: Using Excel

Q: Juan received an inheritance from his grandfather. Worried of spending the money unproperly, he…

A: Total amount = $3,000,000 Time = 2 years No of weeks = 52 *2                      = 104 Rate = 2%…

Q: Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7%…

A: Calculation of money will be in account.

Q: Bill wants to give Maria a $520,000 gift in 6 years. If money is worth 6% compounded semiannually,…

A: From the question, Interest rate (i) = 6% Number of years (n) = 6 years FV = Future Value of gift PV…

Q: Mr. Bates is creating a college investment fund for his daughter. He will putin $850 at the end of…

A: The question is based on the concept of calculation of future value of period fix payment, which is…

Q: When Derrick turned 15, his grandparents put $10,000 into an account that yielded 1.4% interest,…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: The Alavis have decided to invest in a their Son. college fund for They invested $50,000 deferred…

A:

Q: Manuel plans to set aside money for his young daughter’s college tuition. He will deposit money in…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. The…

Q: Layla has inherited $20000 from her grandmother.she plans to use 25% of it to put a down payment on…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: Christina invested $3000 five years ago and earns 2 percent annual interest. By leaving her interest…

A: Invested 3000 N = 5  Interest rate = 2%   She is earning interest in her account and the amount of…

Q: is thinking of establishing a fund for his daughter’s college education. He wants his daughter to be…

A: There is need of planning for savings for the education of the children so that they can study…

Q: Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 6 years.…

A: Yearly Contribution is $500. Total years is 6 Years Current Interest rate is 3.5%(Compounded…

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: Tom and Sandy have set up a sinking fund in order to have $18,000.00 in 4 years for their child's…

A: Using excel PMT function

Q: Frank buys a house at age 48 for $600,000 by making a $170,000 down payment and securing a 30-year…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

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

A: Using excel PV function

Q: Mrs. Lorez wants all of her grandchildren to go to college and decides to help financially. How much…

A: Future Value(FV) is $10,000 Time period(NPER) is 18 years Interest rate(I/Y) is 6% compounded…

Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…

A: Annuity Due: It is  an annuity where payment is due immediately at the start  of each period.

Q: Having received a large inheritance, Jing-mei's parents wish to establish a trust for her college…

A: Future Value =$120,000 N = 7

Q: On the day of his son's birth, a father decided to establish a fund for the boy's college education.…

A: Withdrawal on 18th birthday to 21st birthday = 4000  Interest rate per quarter = 9%/4 = 2.25% per…

Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: The future value function can be used for determining the future value of a present sum, or the…

Q: Eugene began to save for his retirement at age 35, and for 15 years he put $ 325 per month into an…

A: $

Q: John and Jane have been saving to pay for their daughter Macy's college education. Macy just turned…

A: Given  Tuition cost = $20000

Q: Susan Orman wants to pay $1470 semiannually to her granddaughter for 11 years for helping her around…

A: The computation of the present value as follows:

Q: Joseph Ray just received an inheritance of $35,775 from his great aunt. He plans to invest the funds…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Clarissa wants to fund a growing perpetuity that will pay $10,000 per year to a local museum,…

A: Present value of the growing perpetuity is the amount she needs to fund today This can be calculated…

Q: Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 7 years.…

A: Contribution amount = $500 Time period = 7 years  Interest rate = 2.5%  The present value of total…

Q: Ann was given a gift of $10,000 by her grandparents. She has a choice between 2 accounts to invest…

A: Option 1- Present value of gift (PV)= $10,000 Interest rate (r)= 2.35% compounded monthly= 0.001958…

Q: Aini wishes to have 93,000USD to purchase a car in 6 years as part of her financial goals. How much…

A: Future Value = 93,000 USD Time Period = 6 Years Interest Rate = 8%

Q: Mr. Blochirt is creating a college investment fund for his daughter. He will put in $7,000 per year…

A: In this question we need to compute the amount of money Mr. Blochirt daughter have when she starts…

Q: Yumi's grandparents presented her with a gift of $18,000 when she was 8 years old to be used for her…

A: Given data; Investment at the age of 8 years = $ 18000 interest rate in investment = 3.5% compounded…

Q: Sami just purchased a new sports car and wants to set aside cash for future maintenance expenses.…

A: No Expenses in first 5 years Annual Maintenance Cost per year in Year 6 -10 = 2000 Interest Rate =…