Suze Orman wants to pay $1500 semiannually to her granddaughter for 10 years for helping her around the house.  If Suze can invest money at 6% compounded quarterly, how much must she invest today to meet this goal?

Q: how long in years and months will she receive the payments

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A: GIVEN, Age of Maria = 25  retirement age = 65 therefore number of years of savings = 65- 25 = 40…

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A: The question is based on the concept of Present value

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A: Amount that needs to be invested now to meet her goal = 5795.20

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

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A: Lump sum Payment as on today (PV)=$126,000 Duration (n)=8*4=32 periods Rate per period (i)=6%4=0.015

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A: Computation:

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A: The amount of the annual annuity payment can be calculated using the below excel formula:

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A: Interest Payment = 5000 Time Period = 1 year Rate of return = 6%

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A: The computation of yearly payment as follows: