Suppose you make an annual contribution of P9,993 each year to a college fund for a niece. He is 6 years now, and you will start next year and make the last deposit when he is 19. The fund is a money market account earning 6.74% per year. What will it be worth immediately after the last deposit?

Q: Suppose that a woman deposits $10,000 into an investment fund that guarantees to pay 0.5% interest…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: New parents wish to save for their newborn's education and wish to have $46,000 at the end of 17…

A: Computation of yearly payment:Hence, the yearly payment is -$1,682.02.

Q: Mr. Wise is creating a college investment fund for his daughter. He will put in P850 per year for…

A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

Q: Ethan wants to set up a fund for his son's education such that he could withdraw $2,982.00 at the…

A: Quarterly withdrawals (P) = $2,982.00 Period = 6 Years Quarterly period (n) = 6*4 = 24 Interest rate…

Q: Francine currently has $70,000 in her 401k account at work, and plans to contribute $7,000 each year…

A: Current amount (PV) = $ 70000 Annual deposit (P) = $ 7000 Interest rate (r) = 6% Number of annual…

Q: A woman expects to have $10,000 in 4 years to buy a pair of earrings. She plans to create a sinking…

A: A sinking fund is one that loses money for a specific reason. The concept of the time value of money…

Q: Our clients saved $2,500,000 for retirement.  They wish to withdraw $20,000 from the fund each month…

A: An annuity is a contract where periodic payments are made in the future in return for a lump-sum…

Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…

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

Q: Our clients saved $2,500,000 for retirement.  They wish to withdraw $20,000 from the fund each month…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Amount = Principal (1+(rate/100))^n Initially, we deposit P 100,000 in a fund with a 25% annual…

Q: If Luis Jimenez makes annual deposits of $1,000 into a savings account for 30 years, how much will…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: 4. Suppose you make an annual contribution of BD300 each year to a college education fund for a…

A: An annuity: An annuity is a fixed, constant contribution that is made at fixed intervals over a…

Q: If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Peter set up a fund that would pay his family $4,000 at the beginning of every month, in perpetuity.…

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

Q: Yarianny wants to withdraw $25,000 annually starting today for the next 20 years and will increase…

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

Q: Suppose you make an annual contribution of BD100 each year to a college education fund for a niece.…

A: Here, Annual Deposits is BD100 Interest Rate is 6.5% Current Age is 4 years Last Deposit is made on…

Q: A newborn child receives a $7,000 gift toward a college education from her grandparents. How much…

A: Inerest rate (decimal form) = Interest rate100=5%100=0.05   Quarterly interest rate (decimal form)…

Q: Eleanor makes year-end deposits of P500.00 the first year, P550.00 the second year, P605.00 the…

A: Computation:

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: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18…

A: Given  P=$37,000 r= 7.8% n=1 t=18 years

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: Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average…

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

Q: Your brother, who is 6 years old just received a trust fund that will be worth $25,000 when he is 21…

A: For this we will need to calculate the present value of the fund. using present value = future value…

Q: What lump sum do parents need to deposit in an account earning 11%, compounded monthly, so that it…

A: Given: Interest rate = 11% Future value = $90,000 Years = 16 Compounding is monthly

Q: ) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded…

A: Future Value is $200,000 Time period is 8 years Interest rate compounded monthly is 5% To Find:…

Q: A young engineer wants to provide his newly born daughter a lump sum of P 2.0M when she graduates…

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

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: Ms. Pan Aram has set the goal of accumulating Php 4,000,000 for her son's college fund, which will…

A: Here, Future value of deposited amount = Php 4,000,000 Number of years = 18 years Interest rate = 8%…

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: 1)A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for…

A: PV is the current worth of cash flows that are expected to occur in the future.

Q: Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound…

A: The value of equal payments or a single payment at any specific date which falls in future is called…

Q: Mr. Moreno started to deposit Php. 5,500 quarterly in a fund that pays 2.5% compounded monthly. How…

A: Multiple questions asked, so we can solve only first one or question asked as per requirement under…

Q: A family wants to have a $160,000 college fund for their children at the end of 15 years. What…

A: Using excel PMT function

Q: Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How…

A: Let's begin by calculating Effective Interest rate Formual for Effective Interest Rate = (1  +…

Q: New parents wish to save for thier newborn's education and wish to have $36,000 at the end of 18…

A: The computation of yearly payment and interest as follows: Working note: Hence, the interest is…

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: You are saving up for a down payment on a house. You will deposit P600 a month for the next 24…

A: Future value means the value at some future point of time. The future value can be calculated of an…

Q: A man has deposited ₱50 000 in a retirement income plan with a local bank. This bank pays 9% per…

A: The provided information are: Deposit = 50,000 Rate of interest = 9% = 0.09 Time period = 12

Q: Suppose that Mrs. Villanueva would like to save P5.000 every month in a fund that gives 8%…

A: Here, Monthly Savings is P5,000 Interest Rate (r) is 8% Compounding Period (m) is Monthly i.e 12…

Q: It is estimated that you will pay about $80,000 into the Social Security system (FICA) over your…

A: The future value is the value of the equal deposits at the end of the deposit period. The…

Q: Your favorite uncle wants to give each of his favorite nieces and nephews $30,000 now while he is…

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

Q: 0. Tammy is saving up money for an emergeney fund. She hopes to have 4 months' worth of income…

A: The PMT function or formula can be used to determine the amount of monthly payments to accumulate a…

Q: A person sets up a sinking fund in order to have P100,000 after 10 years for his children’s college…

A: Future Value Required = 100,000 Time Period = 10 years or 20 semi annual periods Interest Rate =…

Q: In order to save for her high school graduation, Marie decided to save ₽200 at the end of each…

A: Note: “Since you have asked multiple questions, I will solve the first question for you. If you want…

Q: A family wants to have a $220,000 college fund for their children at the end of 16 years. What…

A: The series of regular payment at the end of each specified intervals is known as ordinary annuity.…

Q: A family want to have a $241,000.00 higher education fund for their children at the end of 22 years.…

A: The calculation is:

Q: You planned to retire after 20 years your goal is to create a fund that will allow you to  receive…

A: first we will calculate the present value of the retirement fund and then use the amount as future…

Q: Eleanor makes year-end deposits of 500 the first year, 550 the second year, 605 the third year, and…

A: Year End Opening Bal Fresh Investment 12% Compounded Annually Year-End Balance 1       500 2 500…