How much must you put away at the end of each year

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: To help you reach a $16,000 goal 8 years fromnow, your father offers to give you $4,000 now.You plan…

A: Steps to calculate annual deposits is shown: Calculate the FV of an amount given by the father at…

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: Upstate University charges ​$15,000 a year in graduate tuition. Tuition rates are growing at 3.5​%…

A: Expected graduate tuition in 6 years = Current Charges * (1+growthrate)^no. of years  Where, current…

Q: You have $500,000 to donate to your college. The college's discount rate is 7%. You donate the money…

A: PV= $500,000 Discount rate= 7% Time period= 10 years Future value (FV)=?

Q: You want to have a $40,000 college fund in 6 years. How much will you have to deposit now in an…

A: Using the present value function in excel

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: You plan to start grad school in 5 years (at the end of year 5) and will graduate 3 years after you…

A: There are two types of basic annuities, i.e., ordinary annuity and annuity due. An ordinary annuity…

Q: How much money would you need at the present to pay for 4 years of college tuition if the first year…

A: Cost for first year = $40,000 Cost for second year = $40,000 + $5,000 = $45,000 Cost for third year…

Q: Anenterprising student invests 1,000 at an annual interest rate that will grow the original…

A: Initial investment (X) = 1000 The investment doubles every 4 years. Let the interest rate = r

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

A: Annual Payments = $14,000 Time = 6 years Annual Receipts after 6 years = $25,000 Time = 4 years

Q: to cost $40,000 and increased by 5% every yea

A:

Q: Sue decides to start saving money for a new car. She knows she can invest money into an account…

A: According to time value of money, FV=PV×1+RMM×N Where, PV = present value R = rate of interest M=…

Q: You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a…

A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

Q: How much will you have saved at the end of 6 years? Find the interest.

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

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: You have a long-term goal of paying off your school loans in five years. You will graduate with a…

A:

Q: You would like to have $200,000 in a college fund in 15 years. How much do you need today if you…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: It is likely that plane tickets will increase 6.5% in each of the next three years. The cost of the…

A: The present value of the future money required considering the interest rate and period of the money…

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: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Today is your 23rd birthday.  Your aunt just gave you $1,000.  You have used the money to open up a…

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

Q: You have $400,000 to donate to your college. The college's discount rate is 6%. You donate the money…

A: The future value of any cash flow is the compounded value of all the current time zero’s deposit and…

Q: When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a…

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

Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…

A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…

Q: An entrepreneurial student plans to borrow money now as much as 20. million, (a) how much is his…

A: Req-(a)   Amount Borrowed 20000000.00 Present value of an annuity of $1 at 12% for 10 periods…

Q: he college tuition is expected to increase with an average of 5% per year for the next 5 years. The…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: today on an 3-year trip during which time you will incur expenses of $40,000 at the end of each…

A: Present value of future cost is cost after reducing the interest cost from that money we can get…

Q: To pay for university, you have just taken out a $1000 government loan that makes you pay $126 per…

A: Loan is the value which is borrowed from the other sources like banks and repaid it later with an…

Q: Starting next year, you will need $5,000 annually for 4years to complete your education. (One year…

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

Q: Total expenses for a year at college will be $9,000. You plan to pay $2,600 from your savings and…

A: Total expense is $9,000 Amount paid is $2600 Simple interest rate is 5%   To Find: Monthly Payment

Q: You get a student loan of $20,000 with an annual interest rate of 6% where you make a payment once a…

A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…

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: You want to invest $10,000 today to accumulate $16,000 for graduate school. If you can invest at an…

A: Future Value  = P*(1+r)^n Where, P = Principal r = rate of interest n = no. of year

Q: *You are planning to purchase your first electric car worth $65,000 right after your graduation (in…

A: A Continuous Compounded Interest rate is the interest rate that is calculated on the principal…

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: Suzanne starts her college education four years from now. For her college education, she is going to…

A: Quarterly Payment = $1,100 Time Period = 4 Years Interest Rate = 13%

Q: You are going back to school and anticipate you will need 25,000 a year for living expenses for 6…

A: Using Excel PV function