On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw $5000 per year for five years. If the first withdrawal will be on the child's 18th birthday, how much should the parent deposit. The rate is 5% annually. $21,647.38 $8994.93 $9916.91 $9444.68

Q: Engr. Chloe deposits P10,000 in a savings account on the day her child is born. She deposits an…

A: Computation of the amount in the account the day after the 21 birthday:F=P(ern)+Aern-1er-1Here,…

Q: What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it…

A: Two questions appear on the board. They are unrelated and are not sub parts. Hence, only the first…

Q: Helen can earn 3% interest in her savings account. Her daughter Roberta is 11 years old today.…

A: The future value of deposit is the value of the current deposits on a future date based on the…

Q: A couple wants to set up a college fund for their child. The fund will give the child $1,000 per…

A: We need to determine the value of the annuity at the present.  Given: PMT = 1000 Period of annuity =…

Q: c). If the father decides to deposit a single amount now instead of K300 at the end of each month,…

A: Data given: FV= k 24,500.90 [as computed in (a) ] r=12% p.a. (assumed compounded annually) n= 17-12…

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

A: Here, to calculate the monthly contribution we have to use the formula of future value of annuity.…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: a) Answer: Annuity due. Annuities are regular periodic payments made over a specified period. When…

Q: On your child’s 1st birthday, you open an account to fund his college education. You deposit $300 to…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: A metallurgical engineer decides to set aside money for his newborn daughter's college education. He…

A: Let’s assume the engineer deposits X for one year for 14 years:

Q: Alice needs P 4,000 per year for four years to go to college. Her father invested P 5,000 in 7%…

A: Future value of an amount is calculated as: = Amount * (1+rate)^number of periods

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Given information: Total amount after 18 years is $43,000 Interest rate is 8% compounded quarterly,…

Q: a parent on the day of the child is born wishes to detrmine what lump sum would have to be paid into…

A: An annuity is a contract between you and an insurance company in which you make a lump-sum payment…

Q: Sammi deposits $12000 at the beginning of each 6-month period into a special savings account. This…

A: Annuity due refers to the series of equal payments that are made at the beginning of each period at…

Q: A parent on the day the child is born wishes to determine what lump sum would have to be paid into…

A: To determine the lump sum amount we can use the concept of time value of money and determine the…

Q: Charlotte wishes to accumulate $100,000 in a savings account in 10 years. If she wishes to make a…

A: Present value indicates the current value of a future earning or sum incurred in the future years…

Q: On the day his baby was born, a father decided to establish a savings account for the child’s…

A: Given Information: Present Value = $0 Annual Payments = $5,000 Time = 18 years Rate = 8%

Q: 4. A child has a savings account in which the same amount is deposited every year. The first payment…

A: Given: Future Value =20,000 Number of payments from 0 to 18 years = 19 Interest rate = 2.3% Tax at…

Q: New parents wish to save for their newborn's education and wish to have $45,000 at the end of 16…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Upon the birth of his first child, Dick Jones decided to establish a savings account to partly pay…

A: Future value is the future worth of an investment which is calculated using the method of…

Q: New parents wish to save for their newborn's education and wish to have $35,000 at the end of 16…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: Earl E. Bird and Ivana Waite both celebrated their 66th birthday today. Both of them qualify to…

A: "Present Value" is the present-day value of a sum of money expected to be received at a future date…

Q: A father wants to set aside money for his 5-year-old son's future college education. Money can be…

A: Deposit: It is a saving which one earns during his or her earning period and saves the same amount…

Q: A child age 3 is given $20,000. The amount is put into savings account which pays 4% compounded…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: A father wishes to provide P4,000 for his son on his 21st birthday How much should he deposit every…

A: Given  P4000 (amount father wishes to give to son)  Deposit to be done for 5 months  Semi annual…

Q: nim to receive $3000 each month for 5 years, beginning 18 4.2% p invest the money today in an…

A: Here we will use the concept of time value of money to answer the questions.

Q: A couple wants to begin saving money for their daughter's education. $16,000 will be needed on the…

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

Q: Suppose you want to save money for your child's college expenses. You deposit $1,000 at the…

A: Future value of an annuity due is defined as the formula, which used to get calculated the end value…

Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…

A: Future value required (FV) = $ 200,000 Interest rate = 5% Monthly interest rate (r) = 5%/12 =…

Q: A mother wants to invests 9,000.00 for her sons future education she invests a portion of the money…

A: Solution:- Interest is the return amount on money invested.

Q: Your daughter will start college one year from today, at which time the first tuition payment of…

A: We need to use present value of annuity formula to calculate the amount that you need today in your…

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Here, we need to calculate the present value which needs to be deposited or kept aside by the couple…

Q: er deposits P15,500 each quarter in a savings bank paying 12.5% compounded quarterly. If she desires…

A: Future value of amount include the amount being deposited and interest being accumulated over the…

Q: Mrs. Santos deposits P5,500 at the end of every six months in a savings account for her daughter's…

A: Deposit = 5500 every 6 months End of month deposits Interest rate = 4% semi annual period N = 21…

Q: As a savings program toward their child’s college education, parents decide to deposit 100 dollars…

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

Q: New parents wish to save for their newborn's education and wish to have $47,000 at the end of 19…

A: Given: Future value = $47,000 Years = 19 Interest rate = 4.3%

Q: Elizabeth Brown has $23,000 that she can deposit into a savings account for five years. Bank A…

A: Here, we need to calculate the future value of the amount deposited today at a given interest rate…

Q: A parent on the day the child is born wishes to determine what lump sum would have to be paid an…

A: Time value of money identifies the depreciation in value of money over the period of time by…

Q: Carol

A: The basic compound interest formula A = P(1 + r/n)nt .Priincipal is $1500,t= 25 years,r=3%.

Q: A student plans to deposit P 2,000 in the bank now and another P 5, 000 each year for the next two…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Assume the money earns 7% interest, compounded quarterly

A: Interest rate is i=7% compounded quaterly no. of periods in a year n=4 *1=4 Time t = 18 years amount…

Q: A couple plans to save for their child’s college education. What principal must be deposited by the…

A: Savings refers to money put aside for some specific work or for emergency needs. Saving is used to…

Q: A father wishes to provide P4,000 for his son on his 21st birthday. How much should he deposit every…

A: When the deposit is intended to be made every six months, it means that interest rate will be…

Q: 6. When Alice and Mark's first child was one month old, and at the end of every month thereafter,…

A: The equal payment flow which occurs for a finite period and ends after lapse of finite time period…

Q: A couple wishes to establish a college fund at a bank for their five-year-old child. The college…

A: In an approach, here we need to convert any of the cash flow elements in dollars into an actual…

Q: Pedro deposits a sum of money in Metrobank for Juan. He wants Metrobank to send Juan checks of P…

A: Interest rate (r) = 12% per annum compounded bimonthly = 2% per bimonthly period Bimonthly checks to…

Q: How much should a parent deposit every 3 months at 4% interest compounded quarterly to achieve a…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: Sali would like to send her parents on a cruise for their 25th wedding anniversary. She has priced…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

Q: How much money will be in the account when the child turns 18?

A: Time value of money(TVM) means that the money received in the present days will have more value…

Q: A mother wishes to set up a savings account for her son's education. She plans on investing $750…

A: Future value of ordinary annuity computes the total amount of periodic payments at a certain time…