On the birth of his first son Zachary, Brian deposited P100,000 in a trust fund that pays 3.75% interest compounded monthly. How much money is in the trust fund when Zachary reaches his 18th birthday?

Q: ow January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both turned 30…

A: Power of compounding is very much as time period extends much as period increase value goes on…

Q: If your parents deposited $15,000 into an account for you when you were born as part of a college…

A: Computation of the amount received on the 18th birthday is shown: Hence, the amount that will be…

Q: Using the mathematical formulas in finance. It is now January 1, 2015. Tom and Jerry are cousins who…

A: Future Value It is  the future sum of money . It means  money is expected to be worth in the future…

Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…

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

Q: How much money should Prisha invest today in a fund that earns interest at 4.02% compounded…

A: Here, Semi Annual Payment (PMT) is $7,750 Interest Rate (r) is 4.02% Compounding Period (m) is…

Q: It is now January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both…

A: Annual rate of return = 10% Time period for T = 46 years  Time period for J = 41 years  Monthly…

Q: A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a…

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

Q: Carl is the beneficiary of a $24,000 trust fund set up for him by his grandparents.  Under the terms…

A: Excel Spreadsheet:

Q: On Chris’ 4th birthday, his great aunt gives him $120,000. His parents place the money in an…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Allison and Leslie, who are twins, just received $20,000 each for their 24th birthday. They both…

A: Parts 1-2:Calculation of Age at which they become millionaires and Annual Contribution:Excel…

Q: It is now January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both…

A: Future Value: It is the amount which  is expected to be worth in the future.

Q: On the 7th birthday of her daughter, Anna deposited an amount in a bank peso bond that pays 1%…

A: The present value of a future sum of money or stream of cash flows with a fixed rate of return is…

Q: until now has been disappointed with Jerry, hence has not given him anything, but they recently…

A: Future value : The value of assets at a future date is referred to as future value. It is the…

Q: Jason received an amount of 1000.00 from his grandpa as a birthday gift. He decides to invest the…

A: Principal Amount, P = 1,000 Interest rate, r = 10% = 0.10 Time, t = 5 years Future Value, FV = P…

Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Annual payment amount starting from year 18 is P10,000 Total number of payments are 5 Interest rate…

Q: On his recent birthday on April 17, 2012, Cai was given by his mother a certain amount of money as…

A: Future value = P 14,000 Period from April 17,2012 to December 25, 2012 = 252 Days Number of days in…

Q: Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account…

A: Introduction: IRA: IRA stands for Individual Retirement Account. Amount is saved for retirement…

Q: Allison and Leslie, who are twins, just received $15,000 each for their 21th birthday. They both…

A: According to the time value principle, the future worth of a dollar sum available today is different…

Q: In order to fund his son’s higher education, Abdullah decided to invest $1000 quarterly for 6 years…

A: Future value is the worth of the current amount in future specified date at given interest rate. The…

Q: Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account…

A: A Roth IRA is a special individual retirement account where you pay taxes on money going into your…

Q: It is now January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both…

A: The grandfather of Tom put $4000 into the trust annually for 46 years that will be paid to Tom on…

Q: Mr. and Mrs. Maglalang decide to set aside ₱ 500,000 today and place it on a bank savings account…

A: Assuming college debut happens in 18th year, Duration of the fund (n) = 18 years = 72 quarters r =…

Q: Allison and Leslie, who are twins, just received $30,000 each for their 21th birthday. They both…

A: Here, Amount Received by Allison on 21st Birthday is $30,000. Amount Received by Leslie on 21st…

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: Oscar purchases an annuity in 2000 for $450,000 which will pay him $90,000 a year for life starting…

A: An annuity scheme is just like a retirement scheme in which a person will receive a regular payments…

Q: her ninth ​birthday, a girl inherits ​$9000 which is to be used for her college education. The money…

A: Amount inherited on 9th birthday = $9,000 Number of years between 17th and 9th birthday = 8 years…

Q: 1. It is now January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both…

A:

Q: how much is the 3rd investment?

A: Monthly interest rate  1st deposit = 6.5%/12 ; time=11×12=132months 2nd deposit = 7.3%/12 ;…

Q: Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be…

A: Given: N = 24, FV = 0, PMT = 1750, rate = 2.4%/12 = 0.2

Q: 1) Rania's grandfather started a college fund for her on the day she was born. The funds were placed…

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

Q: Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that…

A: Assumption: It is assumed that the amount deposited in the certificate of deposit is ‘a’.

Q: Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must…

A: The formula for  Present value of annual withdrawal is =    Present value given annuity factor (…

Q: 1. It is now January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both…

A: Maturity value of Sylvester trust fund on 70th birthday (Dec 31, 2054)  where PMT= $4000,  r= 10%…

Q: On a girl's 10th birthday, her father started to deposit P5,000 quarterly at the end of each term in…

A: The future value of a cash flow is the future worth of a cash flow at a rate of interest. Future…

Q: Julian and Jonathan are twin brothers (and so were born on the same day). Today, both turned 25.…

A: Value of retirement nest of Julian on his 65th birthday would be the future value of annuity of a…

Q: On a boy's seventh birthday, his parents deposited 5,000 in his name in a savings bank paying 2%…

A: Deposit amount (PV) = 5000 Quarterly interest rate (r) = 2% Period from 7th birthday to 21 days  =…

Q: On her recent birthday on April 18, 2019, Lyn was given by her mother a certain amount of money as…

A: The concept of the time value of money states that the money inherently has the interest-earning…

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: After retirement, Andy plans to buy bonds in a perpetual fund. What amount must Andy place in a…

A: PERPETUTITY FORMULA: PERPETUTITY =AMOUNTRATE

Q: n the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Future Value(FV) is ascertained to know the expected value of current amount that will be invested…

Q: Jon was born on March 1, 1983. On the day he was born, Jon's grandfather made an investment of…

A: Interest is an extra amount which is received on deposited value for the period. It increase the…

Q: Joseph Ray just received an inheritance of $35,775 from his great aunt. He plans to invest the funds…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: By the conditions of a will, the sum of P20,000 is left to a girl to be held in a trust fund by her…

A: When the interest is computed on the principal balance along with the accumulated interest is…

Q: Geoff purchased a life annuity for $4,800 that will provide him $100 monthly payments for as long as…

A: Income:   Income includes all the income that belong to the taxpayer, both taxable and non-taxable.…

Q: A man invests P10,000 now for the college education of his 2-year old son. If the fund earns 14%…

A: We can define effective interest rate as that rate which has been adjusted for the effect of…

Q: Trust Fund Grandparents decide to put a lump sumof money into a trust fund on their…

A: The amount of deposit in the account will be the present value of the amount required in the future.

Q: Billy wants to prepare funds for when he retires such that from his 60th to 70th years he will be…

A:

Q: On Chris’ 8th birthday, his great aunt gives him $200,000. His parents place the money in an…

A: Future value can be defined as the value at some future point of time. It is calculated by…

Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Compounding is done to get the future value from present value and discounting of the future value…

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.