Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an ordinary annuity paying 5.2% compounded monthly. Determine the accumulated amount in the college fund after 18 years.

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Q: The will of Don José Luis, who has just died, specifies that the beneficiary of his 15,000,000.00…

A: Insurance Amount = 15,000,000 Interest Rate = 24%/12 = 2% per month Periodic Amount = 250,000…

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

A: Annual withdrawal = 200,000 Period of withdrawal = 4 Years Interest rate (r) = 9% Number of annual…

Q: Demitri's parents begin saving for his college fund when Demetri is 10 years old. They invest $5,000…

A: Money Deposited when Demetri is 10 = $5000 Interest rate =1.2% compounded annually Years = 18-10 = 8…

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

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A: ANSWER GIVEN ON THE NEXT SHEET

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: Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial…

A: Quaterly investment amount is $400 Time period is 4 years Interest rate is 8% To Find: Cash value…

Q: Shiraz deposited $500 at the end of each year for 18 years in a savings account. If the account paid…

A: Using the Future value function in excel

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A: Payment per month is $4,000 in perperutity Interest rate is 5.50% compounded semi annually To find:…

Q: Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

A: Future value required (FV) = $ 80000 Interest rate = 3.7% Quarterly interest rate (r) = 3.7%/4 =…

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

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

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = $75000 P =…

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

A:

Q: Since the birth of his granddaughter, 20 years ago, Jason has deposited $200 at the beginning of…

A: 1. FVA after 7 years   = P * (([1 + I]^N - 1 )*(1+I))/I, where P is the payment amount= 200 I is…

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A: The amount required to deposit today can be calculated with the help of present value function.

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A: Future value It is a value that a person will receive in the future on an investment that is done…

Q: At birth of his grandson, Gregorio Sirug commits to help pay his college education. He decides to…

A: Quarterly deposit (P) = P10,400 Interest rate = 10% Quarterly interest rate (r) = 10%/4 = 2.50%…

Q: When Xian was born, his father Brian deposited a sum of money for the college education of Xian.…

A: Present Value = Future Value x 11+in

Q: Mary plans to make the following contributions to her retirement account: $10,000 for each of the…

A: In order to find how much money she will have one has to calculate the future value after 20 years.

Q: At the birth of his grandson, Jethro commits to help pay his college education. He decides to make…

A: In the given question, Php 10,400 will be deposited at the end of each 3 months in an account…

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: For her​ daughter's education, Georgina Harcourt has invested an inheritance in a fund paying 3.8​%…

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A: Future value required (FV) = P 2,000,000 Period = 21 Years Number of monthly payments (N) = 21*12 =…

Q: The Pithybottoms want to make a donation to set up a scholarship trust fund at Hinose College. The…

A: When the cash flow are regular and for an indefinite time period, the cash flow is knows as…

Q: Hamid invests in a perpetuity with an interest rate of 2.3%p.a. compounding six-monthly and then…

A: Interest rate is 2.3% Compounded six-monthly Six monthly interest rate is 2.3%2= 1.15% Amount of…

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: On January 1, Alan King decided to transfer an amount from his checking account into aninvestment…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: Linda has joined a Christmas Fund Club at her bank. At the end of every month, december through…

A: Computation:

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: Since the birth of his granddaughter, 20 years ago, Jacob has deposited $100 at the beginning of…

A: Monthly Deposit = 100 Beginning of period deposits   First 11 years: Interest Rate = 4.50%/12  Time…

Q: .What was size of the investment in the fund if it was earning 5.50% compounded semi-annually?

A: Present Value of Perpetuity Due: It refers to the present worth of the annuity payments made for…

Q: On Sarah’s 18th birthday, she creates a trust fund to pay her a sequence of nine semiannual payments…

A: pva=A×1-11+RMM×NRM A=ANNUITY R=RATE OF INTEREST M=FREQUENCY OF COMPOUNDING N=NUMBER OF YEARS

Q: nnifer started to deposit ₱1,000 monthly in a fund that pays 6% compounded quarterly. How much will…

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

Q: How much money did he have for retirement?

A: Future Value of Annuity: It is the future worth of the present annuity stream cash flows and is…

Q: A young man is the beneficiary of a trust fund established for him 18 years ago at his birth. If the…

A: Future value formula: Future value =present value×1+rmm×n where, r=rate m=frequency of compounding…

Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8%…

A: Rate of Interest = 4.8% Compounded Monthly Time Period(t) = 18 years  n = 12 Future Value = $97,000…

Q: Joe Hernandez has inherited $25,000 and wishes to purchase an annuity that will provide him with a…

A: Time value tells that money received today is of more value than that of receiving the exact value…

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…