et's parents decided to pay a lump sum payment today of $135000 so she will be able to make 4 years of monthly withdrawals. The college provides an annuity of 6%, compounded monthly. If Janet will make her first withdrawal in 8 years, what is the size of EACH withdrawal?

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A: Quarterly payment (Q) = 15000 pesos n = 25 years = 100 quarters Interest rate = 10.5%

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

Q: Today is 1 September, and this is the birthday of your two children, Tom and Lilly. Tom is 1 year…

A: Age of Tom = 1 Age of Lily = 4 College Starting Age = 18 Interest Rate = 4%

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: Brittany's parents want their child to go to the same college that they did. After talking with the…

A: Working of the amount put down by the Brittany’s Parents is shown: Hence, the amount deposited will…

Q: Suppose your parents have decided that after your graduation at the end of the year they would start…

A: The Present Value of Annuity (PVAF) is the cash value of all future annuity payments discounted at a…

Q: Cynthia is 27 and has 3 years' worth of payments remaining on her student loan. She pays $312.75 a)…

A: Present value of annuity is the sum of the present value of all the cash flow in the future.

Q: ylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: In this we need to calculate the present value of annuity.

Q: Jennifer is planning to attend college when she graduates from high school 4years from now. She…

A: The frequency of payment is annual. However the interest rate is 12% compounded daily. Further there…

Q: In order to save for her high school graduation, Maria decided to save P200 at the end of every…

A: The correct answer with calculation is given in the below step.

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…

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A: People invest certain amount to get an estimated value after a certain period of time. This value is…

Q: Since the birth of her granddaughter, 19 years ago, Holly has deposited $150 at the beginning of…

A: Given, The monthly deposit is $150. Interest is 3.25% for first 7 years and 3.75% for the next 12…

Q: Since the birth of his granddaughter, 18 years ago, Kristen has deposited $300 at the beginning of…

A:

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

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: trust for her today which will provide 16 payments throughout the next four years as well as the…

A: *Answer:

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A: Time period is 20 years Monthly deposit is $50 Interest rate for first 8 years is 5.10% Interest…

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: Rose, recently purchased a new automobile for $25,000. She made a $5,000 down payment and financed…

A: Using excel PMT function

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A: Present Value  = Future value / (1+rate)^n Where, Future Value = $200000 n = 18*12 = 216 r= 9%…

Q: Mary, a college student, needs to borrow $8,000 today for her tuition. She agrees to pay back the…

A: This question is about calculating the future value. Formula: Future value = Initial amount*(1+…

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: 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

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A: Amount is the sum of the initial principal amount and interest accumulated on it during the time…

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A: The concept of the present value implies that the money today is  having more worth  than the money…

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A: Given information: Payment = $600 Time period (September 2012 to May 2017) =  56 months Interest…

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A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: How much should be his monthly withdrawals?

A: Given in the question: Principal amount deposited = P150,000 Interest Rate = 3% Interest is…

Q: It is Jerry's 14th birthday and his parents plan to invest some money so that they will have $17 000…

A: Amount required at 18th birthday = $17000 Quarterly interest rate (r) = 0.0215 (i.e. 0.086 / 4)…

Q: When Mary had 4 years left in college, she took out a student loan for $15,110. The loan has an…

A: Loan Amount = 15,110 Time Period in college = T = 4 years Time Period for loan repayment = N = 36…

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A: Since, the payments are semiannual, Number of payment periods = 2 * years  Since payment will…

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: ne has just graduated from high school and has received an award for $5,000. She would like to…

A: The compounding increase the effective interest on the and more compounding increases future value…

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

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A: a) Years till Tom goes to college = 18 - 4 = 14 yearsAnnual fees paid = 15,000Years in college =…

Q: ) Mr. and Mrs. Lacks want to collect money for college expenses in a bank at 9% interest rate…

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Q: In order to save for her high school graduation, Marie decided to save ₽200 at the end of each…

A: Note: “Since you have asked multiple questions, I will solve the first question for you. If you want…

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A: The amount of the annual annuity payment can be calculated using the below excel formula:

Q: Today is 1 September, and this is the birthday of your two children, Tom and Lilly. Tom is 1 year…

A: A financial measurement that calculates the worth of a potential sum of money or stream of payments…

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A: In this we need to calculate effective rate and than find out present value factor and from that we…

Q: Grandma Riley wants to help Scott while he's in college by giving him a S220 monthly allowance for 5…

A: Time Value of Money:The time value of money is the idea that the value of money received today will…

Q: Janet decided to pay a lump sum payment of $51000 so she will be able to make 6 years of quarterly…

A: Payment is the transfer, in appropriate amounts, of money, goods or services in return for goods and…

Q: Lisa purchased an annuity that had an interest rate of 3.00% compounded semi-annually. It provided…

A: The purchase price of an annuity corresponds to current worth of annuity payments that make investor…

Q: mary, a college student, needs to borrow $8000 today for her tuition. She agrees to pay back the…

A: Loan is referred as the amount of fund is given to a party in exchange of repayment of principal…

Q: Last year Jane's grandmother offered to put enough money into a savings account to generate $5000 in…

A: Interest Payment = 5000 Time Period = 1 year Rate of return = 6%

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.