Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 7%. How much should you deposit monthly to accumulate $80,000 in 15 years? You should invest $each month. (Do not round until the final answer. Then round to two decimal places as needed.)

Q: ur client has asked you what would be needed to fund your 2 children’s future college costs. Assume…

A: Future planning is needed for the education of the children and you have to save for that.

Q: How much money must you deposit in an account each year to fund your children’s education? Your…

A: Information Provided: College expenses = $45,000 Interest rate = 5%

Q: You plan to send your first born child to College for a 4-year degree with 4 annual payments.  Your…

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

Q: . How much should you deposit monthly to accumulate $85,000 in 15 years?

A: Future Value of Annuity: It represents the future worth of current annuity payments made…

Q: You want to have a $40,000 college fund in 6 years. How much will you have to deposit now in an…

A: Using the present value function in excel

Q: You want to set up a college savings plan for your daughter. She is currently 10 years old and will…

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

Q: Martina wants to save money to open a tutoring center. She buys an annuity with a yearly payment of…

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

Q: John needs to invest to help with his child's college fund. How much would he have to invest to have…

A: Given: Amount = $67,300 Years =13 Interest rate = 2.17%

Q: Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

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: Consider the two savings plans below. Compare the balances in each plan after 12 years. Which person…

A: Time Period is 12 years Deposits of Yolanda is $350 per month Deposits of Zach is $4,200 per year…

Q: Holly wants to have $250,000 to send a recently born child to college. She sets up a 529 plan and…

A: Future value (FV) = $ 250,000 Annual interest rate (R) = 6% Number of annual investment (N) = 17…

Q: Amy Monroe wants to create a fund today that will enable her to withdraw $25,000 per year for 8…

A: Present value = Future annual withdrawals amount * Present value of discounting factor (8%, 5th to…

Q: What is the expected cost of college in each of the 4 years?

A: Future value or the expected value of a college can be found out by multiplying the interest rate…

Q: Suppose you have three goals in your financial planning for saving money.First, you would like to be…

A:

Q: Use the savings plan formula to answer the following question. Your goal is to create a college fund…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: I expect to save $100,000 in 15 years for my kid's college savings account. Assuming I get a return…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: Suppose you are 30 years old and would like to retire at age 60. ​Furthermore, you would like to…

A: Annuity means a series of finite number of payments which are equal in size and made in equal…

Q: If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much…

A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate  n= Number of period ) FV=…

Q: Please provide working to the solution for the question below: Suppose you are 40 years old and…

A: Solution:- When an equal amount is deposited each period, it is called annuity.  We know, Present…

Q: You would like to have $200,000 in a college fund in 15 years. How much do you need today if you…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: Imagine that you are a professional personal financial planner. One of your clients asks you the…

A: Annual Interest (r) = 5% Part A Annual Saving = 3,700,000 Time Period (N) = 15 years Future Value =…

Q: You plan to send your first born child for a 4-year degree with 4 annual payments. Your first…

A: According to the time value rule, a sum of money today can earn an interest amount by investing it…

Q: Heather needs to invest to help with her child's college fund. How much would she have to invest to…

A: Money’s value declines with the time. Discounting is a way which is used to get the PV of future…

Q: You would like to have enough money saved to receive a growing annuity for 25 years, growing at a…

A: The present value of the growing annuity is the current worth of a cash flow series growing at a…

Q: When your first child is born, you begin to save for college by depositing $600 per month in an…

A: Annuity means number of payments which are equal in size and made at equal interval of time. Person…

Q: Your parents will retire in 16 years. They currently have $400,000 saved, and they think they will…

A:

Q: on. How much should be deposited?

A: Present Value of Annuity: It represents the present worth of the future value of the annuity and is…

Q: When your first child is born, you begin to save for college by depositing $225 per month in an…

A: Future value is calculated by multiplying the present value with the 1+r factor for the given rate…

Q: A couple wants to save for their daughter's college expense. The daughter will enter college eight…

A: Future value is the value of assets at a future date for a given growth rate. It is given as: FV =…

Q: Suppose you'd like to save enough money to pay cash for your next car. The goal is to save an extra…

A: The quarterly amount will be found using excel’s pmt function. It is the minimum amount that must be…

Q: You are saving for the university education of your two children. They are two years apart in age;…

A: Deposits should be made to make the university expenses for both children. Hence, first present…

Q: You want to create an endowment income of $35,000 per year for Oxfordshire Charity, bit the first…

A: The amount that should be invested today is the present value of all future endowment payments.…

Q: You now know the power of compound starting to save for your retirement as early as possible. You…

A: In arithmetic growing annuity amount each year increase by fixed amount but this amount grow much…

Q: . What is the expected cost of college in each of the 4 years? 2. How much will need to be in the…

A: Hi, since there are multiple questions posted, we will answer first three questions. If you want any…

Q: Consider the two savings plans below. Compare the balances in each plan after 14 years. Which person…

A: P = PMT [((1 + r)n - 1) / r]   Where: P = Future value PMT = Annuity paymentr = Interest raten =…

Q: You want to create a college fund for a child who is now 3 years old. The fund should grow to…

A: According time value of  Money, FV=PV×1+rn

Q: A couple wants to set up a college savings account for their grandchild. If the account earns 4.4%…

A: We need to calculate Present value of $50000, using time value of money formulae.

Q: Aunt Zelda’s son starts college in 5 years for which she will need $15,000 payable at the end of…

A: Aunt Zelda will buy an annuity at the beginning of year 5 that will pay $15000 for college at the…

Q: Suppose you want to use this fund to buy a $279,000 houseboat when you retire in 40 years. How much…

A: Future Value = $279,000 Interest Rate = 4.75% Time Period = 40 Years

Q: You calculate that you will need $75,000 in ten years to be able to pay for your daughter's college…

A: The question is based on the concept of Financial Accounting.

Q: Holly wants to have $220,000 to send a recently born child to college. She sets up a 529 plan and…

A: RATE  1.  4% 2.  5% YEARS 15 PRESENT VALUE $0 FUTURE VALUE $220,000