You want to set aside money in order to present your son with a 25,000 trip upon his graduation from high school in 3 years. If your opportunity cost of capital is 9% per year, how much do you need to set aside? Round your answer to the nearest dollar?

Q: Your parents invest $10,000 in a college fund when you are born. They find a fund that will return…

A: Initial investment (P) = $10000 Interest rate (r) = 8% Fund duration (n) = 18 years Let the tuition…

Q: Your younger sister, Brittany, will start college in five years. She has just informed your parents…

A: given, A = $30,000 r=10% n = 4 years

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: Your brother asks you to invest in one of his hair brained schemes. The scheme involves you…

A: We will have to determine if this deal is financially viable for me or not. For this I will compute…

Q: 1. William Jack and Sophia Rose are planning on their first child education. If they expect that…

A: "As per the policy of our company, In case of multiple questions asked then, we are allowed to…

Q: Nick has been offered a unique investment opportunity. If Nick invests $10,400 today, Nick will…

A: Net Present Value, commonly known as NPV is defined as the difference between the PV of cash inflows…

Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…

A: Year PV factor @ 6% Remarks 1       0.94340  = 1 / 1.06 2       0.89000  = 0.9434 / 1.06 3…

Q: You dream of endowing a chair in finance at the local university that will provide a salary of…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: You are saving for the college education of your two children. One child will enter college in 5…

A: Present value of annuity formula along with future value of annuity formula is used to calculated…

Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Generally, investment is done by individuals order to have sufficient money available for future…

Q: You will graduate in two years and your father promised you a gift of $25,000. You are an ardent…

A:

Q: Your client has great news. His son was born last week. He wants to set aside $50,000 today to cover…

A: Future Value = Present Value ( 1 + i )n   Note: Assuming that interest on his investment will be…

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: Future value  The future value indicates the value of a current investment over a specified period…

Q: Your parents are interested in getting advice on what is the best outcome at the end of a six-year…

A: Future Value is the value that is expected to receive in the future period. This can be resulted…

Q: Your sister will start college in five years. She has just informed your parents that she wants to…

A: Here, To Find: Amount of savings to invest each year for next five years =?

Q: Suzy wants to buy a house but does not want to get a loan. The average price of her dream house is…

A: Annuity is the recurring cashflow for a fixed interval. Future value of annuity (FVA) formula:…

Q: SOLVE the following: i. Suppose that your five-year old daughter has just announced her desire to…

A: Money’s value declines with the time. Compounding and discounting are the two ways which considers…

Q: You have an absolutely brilliant child who will be attending a private college in 11 years. You know…

A: Data given: Cost of 4 year college  = $15000 per year. n=11 years  Increase in rate= 4%   Required :…

Q: Your friend is considering investing in a two-year MBA program. Tuition costs will be $60,000 for…

A: An investment is a type purchase of an item or thing with the goal of earning income or rising in…

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: A father wants to deposit an unknown lump-sum amount into an investment opportunity 2 years from now…

A: Net present value is defined as the discounted cash flow technique which applies to weight the items…

Q: Maria wants to set aside funds to take an around the world cruise in four years. Maria expects that…

A: Annuity due alludes to a progression of equivalent installments made at a similar interval toward…

Q: To pay for your child’s education, you wish to have accumulated $25,000 at the end of 15 years. To…

A: Future Value refers to compounded value of present amount or a series of equal amount of payment…

Q: Franklin Templeton has just invested $10,360 for his son (age one). This money will be used for his…

A: Computation of rate of return is as follows:A=P1+r100nWhere,A=Future valueP=Present valuer=rate of…

Q: Your parents want to invest a lump sum at 8% interest to finance your masters’ degree which you are…

A: Amount need to be invested now = R 225,397.81 Refer step2 for explanation

Q: Walt is evaluating an investment that will provide the following returns at the end of each of the…

A: Present Value is the current value of a cash flow that can be occurred in future. To find the…

Q: Franklin Templeton has just invested $9,260 for his son (age one). This money will be used for his…

A: We will use rate function in excel to calculate the return

Q: d. Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that…

A: Solution d: Desired future amount = $30,000 Interest rate = 8% Period = 4 years

Q: Suppose that you are obtaining a personal loan from your uncle in the amount of $20,000 (now) to be…

A: Present value: The money having at present has more value than receivable in future. Formula: FV =…

Q: Manny Kurr is considering the purchase of a beauty salon. The initial costof this purchase is…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: invest

A: Formula to calculate PV or amount to be invested now is: PV = FV/(1+r)^n Where PV is the present…

Q: You dream of endowing a chair in finance at the local university that will provide a salary of…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: Suppose you're fresh out of college and have a new job where you're able, by being frugal, to put…

A: Time Value of Money states that a dollar today is worth more than a dollar later because it has…

Q: Assume the total cost of a college education will be $200,000 when your child enters college in 15…

A: future value formula: future value=present value×1+rn where, r=rate n=number of years

Q: You will graduate in two years and your father promised you a gift of $25,000. You are an ardent…

A: Compound interest - In this method, the interest is calculated on the balance at the end of each…

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