Your client has great news. His son was born last week. He wants to set aside $50,000 today to cover expected college costs of $140,000 18 years from now. How much does he need to earn on his investments on an annual basis to achieve his goal?

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

A: Formula used to calculate present value.

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: Your sister turned 35 today, and she is planning to save $85,000 per year for retirement, with the…

A: Given Information: Annual payment is $85,000 for 30 years Interest rate is 7.5%

Q: Your finance professor suggests that you should have $2,500,000 in your retirement portfolio before…

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

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: Steve Madison needs $250,000 in 10 years. How much must he invest at the end of each year, at 5%…

A: Annuity amount = Futur value of annuity amount / {[(1+r)^n-1] /r}

Q: Jerry intends to use the money from his loan (and his personal savings if necessary) to make an…

A: Effective rate of return is the actual interest rate received or paid by the depositor or borrower…

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: Evan would like to have $2,000,000 saved by the time he retires in 40 years. How much does he need…

A: Given details are : Future value of savings = $2000000 Time period = 40 years Interest rate = 110%…

Q: Your brother turned 30 today, and she is planning to save $8,000 per year for retirement, with the…

A: N = 30, PV =0, PMT = 8000, rate = 7% use FV function in Excel amount accumulated at retirement =…

Q: You want to set aside money in order to present your son with a 25,000 trip upon his graduation from…

A: Present value is the current worth of the future payment. ------------------------------ Given:…

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

A: Initial investment = $10,000 Period = 18 years Interest rate = 0.1024  Accumulated amount = ?

Q: Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will…

A: Present value is a current value of future cash flows at a given rate. It is given as: P.V =…

Q: Becky would like to be a millionaire in 20 years. How much would she need to invest quarterly in a…

A: Here, Required Amount is $1,000,000 Time Period (n) is 20 years Interest Rate (r) is 9% Compounding…

Q: .   Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan…

A: The question is based on the concept of time value of money with annuity payment , used the equation…

Q: Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her…

A: Let the single investment today = P Future value needed = $2 million n = 35 years r = 4%

Q: Mr. Bates is creating a college investment fund for his daughter. He will putin $850 at the end of…

A: The question is based on the concept of calculation of future value of period fix payment, which is…

Q: Sarah Wiggum would like to make a single investment and have ​$2.0 million at the time of her…

A: Future value (FV) = $2,000,000 Rate of return (r) = 0.04 Period (t) = 35 years Present value (P0) =…

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

A: Present Value:The value of today’s amount to be paid or received in the future at a compound…

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could earn…

A: Present value = Future value * Present value of $1 table factor

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

A: Annuity An annuity is a series in which periodic payments are made for a specific period. The main…

Q: A devoted Indiana basketball fan needs $11,200.00 to attend the Final Four exactly one year from…

A: As a first step let's assign a symbol to each of the information we have:Future value, FV = $…

Q: Under these assumptions, how much can he spend each year after he retires?

A: Future value: Future value is the amount derived from compounding the present amount or cashflows.…

Q: Mike Gordon wishes to have $80,000 in five years. If he can earn annual interest of 2%, how much…

A:

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: Molly Lincoln, a 25-year-old personal loan officer at First National Bank, understands the…

A:

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: What interest (to the closest percent) must she earn in this account to achieve this financial…

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: Tom and Mary James just had a baby. They heard that the cost of providinga college education for…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: You’ve landed your first job after graduation. Although retirement may seem like a long way off, you…

A: contribution =$7000 per year  interest rate =6% Period =35 Future value FACTOR =(1+r)n-1/r…

Q: Mr. J. J. Parker is creating a college fund for his daughter. He plans to make 15 yearly payments of…

A: GIVEN, YEARLY PAYMENT = $1500 N = 15 YEARS R = 12% LET FOUR YEARLY WITHDRAWAL = A  withdrawal from…

Q: receiving 25,000.00 pesos from his grandfather yearly and has decided to invest it next year to a…

A: The present value is value without interest and future value is value with interest. Can be found…

Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could eam a…

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: I am setting up a fund for my son to go to college. I figure that he will need Php50,000 by the time…

A: Future value (FV) = Php. 50,000 Annual interest rate = 5.75% Monthly interest rate (r) = 5.75%/12 =…

Q: Starting on her 30th birthday, a woman will invest an amount every year on her birthday in an…

A: FVA FORMULA: FVA=A×1+RN-1R

Q: Your parents will retire in 19 years. They currentlyhave $350,000 saved, and they think they will…

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

Q: Richard wants to ensure that at least some of his descendants are well educated in perpetuity. He is…

A: The present value of a lump sum: The present value of a lump sum (single) investment made at a…

Q: John would like to accumulate $100,000 by the time his son starts college in ten years.  What amount…

A: Given : Future Value =$100,000 Interest Rate = 5% Time = 10 years Compounding frequency per year  i)…

Q: Can you help me work out this problem in detail?   Ben wants to receive $6,000 a year for 10 years.…

A:

Q: Nest egg at 4% 2b. Nest egg at 8%

A: 1.

Q: Your grandparents would like to establish a trust fund that would pay annual payments to you and…

A: In this question we need to compute the amount parents need to deposit in a trust so that we will…

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: A first-year engineering student wants to have $30,000 at graduation 4 years from now to buy a new…

A: Given: Future value (FV) = 30,000 Present value (P) = 10,000 Interest rate = 12%