o prepare for his son's college education, a man plans to make monthly deposits of Php2000 for 60months, starting today. Interest rate is 12% annually. What is the present worth of all his investment?

Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…

A: Formula used to calculate present value.

Q: A 20-year-old student wants to save RM 4 a day for her retirement.  Every day she places RM 4 in a…

A: An annuity is a series of cash flows such as income or payment over a specific duration. Each cash…

Q: Chester hopes to earn $1200 in interest in 2.5years time from $60,000 that he has available to…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: A young man has decided to go into business at the age 40. He wishes to accumulate P 200,000.00 at…

A: Future Value = 200,000 Current Value invested = x Deposit will increase each year by 10% Rate = 9.6%…

Q: Mr and Mrs Chong are considering two types of education saving for their children. Saving A requires…

A: Here, Details of Saving A: Deposit Amount is RM 500 at the end of each month Interest rate is 3%…

Q: A father, whose dream is to see his son grow up to be an engineer, plans to invest a certain sum…

A: given, Annuity ( A)= $15000 rate (r) =12% n = 9 (10th to 18 th year)

Q: Rohit invests $ 1 every year starting from the end of the current year. If his savings earn an…

A: Solved using Financial Calculator  PMT = +/- 1 I/Y = 15 FV = 20 CPT N = 9.92 = 10 years

Q: You need 40,000 pesos per year for 4 years to go to college. Your father invested 50,000 pesos at 7%…

A: Requirement = 40,000 per year for 4 years Initial Investment = 50,000 Interest = 7%

Q: Scott wants to invest RM1,000 for 1 year. At Bank A, his investment will collect 3% interest…

A: Calculate the effective annual rate of return for both the banks and select the bank that offers a…

Q: Alex estimates that he will have $47,500 in student loans by the time he graduates. The interest…

A: Here, Present Value is $47,500 Interest Rate is 7.2% Therefore, the Monthly Interest Rate is : Time…

Q: Art wants to know how much he'll have to invest today to receive an annuity of $8,000 for three…

A: The computation of amount of investment is as follows:The investment needed today is the present…

Q: (Refer to this word problem. , Samuel wishes to have P500,000 available for his son's college…

A: Accumulated value (F) = P 500000 t = 14 years = 28 semiannual periods r = 4.4% per annum = 2.2%…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: Payout annuity is the amount that an investor receives at a regular interval after a certain period…

Q: Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: In order to pay for college, the parents of a child invest $10,000 in a bond that pays 6%…

A: Investment (P) = $ 10,000 Interest rate= 6% Semi annual interest rate (r) = 6%/2 = 3% Period = 20…

Q: Allan plan to go to London to visit friends in three years. The trip is expected to cost a total of…

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

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: The correct answer for the above mentioned is given in the following steps for your reference.

Q: He wants to deposit his savings into a bank account. How much does Jacob have to deposit now in the…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: How much does Steve need to invest today, If he wants to have $50,000 in 15 years? He opens an…

A: Present Value = Future Value / (1+r)^n Where, r = rate of return per period i.e. 7.8%/12 = 0.65% or…

Q: Betty wants to invest a monthly sum of money in order to accumulate R100000 in seven years. How much…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

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: Lenter wishes to have php. 36,000 after 1 year and 3 months to be used for their educational tour.…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Cameron is saving for his retirement 22 years from now by setting up a savings plan. He has set up a…

A: Time period till retirement is 22 years Quarterly saving of $97.00 Time period of saving is 12 years…

Q: to pay his son’s university tuition fees for 4 years starting 18 years from now. The current annual…

A: There is need of planning for the future cost of education because compounding increase value of…

Q: When your first child is born, you begin to save for college by depositing 100  per month in an…

A: Future value = Present value * eRate of interest * Time Where e = 2.71828

Q: Mark deposits $40,000 now into an account which will earn interest at a rate of 8% per year, how…

A: Present value of annuity concept is used to calculate the annual withdrawal amount.

Q: To pay for your child's education, you wish to have accumulated P15,000 at the end of 15 years. To…

A: Future value (F) = P15,000 Time period (n) = 15 years Rate of interest = 6% (compounded annually)

Q: A young man has decided to go into business at age 40. He wishes to accumulate P200,000.00 at that…

A: Given: Future Value = P200,000 Current Value invested = x Deposit will increase each year by 10%…

Q: After graduation, you plan to work for Asia Corporation for 12 years and then start your own…

A:

Q: When your first child is born, you begin to save for college by depositing $225 per month in an…

A: Future value is calculated by multiplying the present value with the 1+r factor for the given rate…

Q: John would like to accumulate $100,000 by the time his son starts college in ten years.  What amount…

A: Given : Future Value =$100,000 Interest Rate = 5% Time = 10 years Compounding frequency per year  i)…

Q: 1.) Miller likes to invest in annuity that will pay him Php. 5000 at the end of each month for 5…

A: Note : As per the guidelines, only first question will be answered. Kindly post the second question…

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = P28000 NOMINAL RATE = 5.5% INFLATION = 8.7% N = ( 18-5) = 13 YEARS

Q: Starting next year, Moussa Al Khatib will need $10,000 annually for 4 years to complete his…

A: Given information: Amount needed in next year $10,000 Number of years 4 Interest rate is 5%.

Q: A person wishes that his son becomes an Engineering graduate. To achieve this he starts saving every…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: (a) Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when…

A: Savings refers to amount held by an individual after discharging all expenses as taxes, rent,…

Q: Assume the total cost of a college education will be $200,000 when your child enters college in 15…

A: future value formula: future value=present value×1+rn where, r=rate n=number of years

Q: What amount is needed to invest today by a man if he wants to receive quarterly cash out of Php…

A: Formula Present value = P*(1-1/(1+i)n)/i Where P = Quarterly cash out i.e. Php 49623 i = Quarterly…

Q: A couple wants to set up a college savings account for their grandchild. If the account earns 4.4%…

A: We need to calculate Present value of $50000, using time value of money formulae.

Q: An electrical engineer who is anticipating paying for his daughter’s college education plans to…

A: Calculate the future value of the deposits by using the EXCEL FV function as follows: Working:…

Q: Magnum plans to retire in 28 years with an amount of $2,500,000. His financial advisor has found a…

A: Period (t) = 28 Years Interest rate (r) = 5% Future value (FV) = $2,500,000

Q: Rodney would like to save $57,000 over the next 15 years. How much must he deposit at the beginning…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: If he deposits 2000 at the end of every year into a special account for seven years and the bank…

A: This problem can be solved in light of annuity and future value. Total amount in the deposit account…

Q: A high school student would like to save P50,000 for his graduation. How much should he deposit in a…

A: The amount required in the future is the future value of periodic deposits. This is the compounded…

Q: If Rex wants to be a millionaire by the time he retires (45 years from now), how much does he need…

A: Present Value: It represents the present worth of the future amount and is computed by the…

Q: To pay his university education, Mr. Ahmed is saving $ 1000, at the beginning of each year for the…

A: The formula to compute future value of annuity due: