Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at $125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?

Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at $125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at ₱125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?
A rather wealthy man decides to arrange for his descendants to be well educated. He wants each child to have $65,000 for his or her education. He plans to set up a perpetual trust fund so that five children will receive this assistance in each generation. He estimates that generations will be spaced 25 years apart. He expects the trust to be able to obtain a 5% rate of return and the first recipients to receive the money 15 years hence. How much money should he now set aside in the trust?
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Need answers ASAP... Richard Snooty wants to ensure that at least some of his descendants are well educated in perpetuity. He is planning for 5 college students each generation at $125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?
. Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of each year for the next 18 years if the funds can earn 5 percent. If she can earn 7 percent, how much less will she have to invest each year?
John wants to have $200,000 to send his brother to school. He sets up a 529 plan and wants to know how much he must invest at the end of each year for the next 18 years if the funds earn 5 percent. If the funds earn 7 percent, how much less will she have to invest each year.
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A man wants to help provide a college education for his young daughter. He can afford to invest $1500/yr for the next 5 years, beginning on the girl’s 5th birthday. He wishes to give his daughter $10,000 on her 18th, 19th, 20th, and 21st birthdays, for a total of $40,000. Assuming 6% interest, what uniform annual investment will he have to make on the girl’s 9th through 17th birthdays? PLEASE USE EXCEL SOFTWARE TO SOLVE. WOULD GIVE POSITIVE RATING.
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