Your goal is to have a college fund for your child. Suppose you find a fund that  offers an APR of 5% compounded monthly. Use Excel to create a table with  months as the first column, payment in the second column and amount in  account as the third. Use the table to determine how much should you deposit monthly to accumulate $85000 in 15 years.

Q: An investment banker would like to receive $1,200 at the beginning of every 3 months from her…

A: The concept of the time value of money states that the current worth of money is more than its value…

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

A: given data  yolanda deposits 300 every month Apr = 4% = 4/12 = 4/1200 = 1/300 future value after 14…

Q: Suppose that you are saving for college for a child. That child was just born and you will have to…

A: Here, Amount required to pay for the tuition for four years is $65,000 annually Time duration after…

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: The parents of a 3 year old child decide they need to start saving for their child's college fund.…

A: Here, Future value (FV) = 22,000 Time period = 15 years  Interest rate = 3.5% To Find: Present value…

Q: How much must you put away at the end of each year

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

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: Suppose Mrs. Aquino would like to save Php 400 at the end of each month, for six months in a fund…

A: In the given question Php 400 will be deposited at the end of each month for 6 months. The amount…

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: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Annuity: Annuity helps the investors to receive regular disbursements, for that the investors are…

Q: A financial planning service offers a college savings program. The plan calls for you to make six…

A: Annual Payments = $14,000 Time = 6 years Annual Receipts after 6 years = $25,000 Time = 4 years

Q: Consider the two savings plans below. Compare the balances in each plan after 15 years. Which person…

A: Future Value of annuity : To know the which plan is better we have to calculate the future value 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: 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: Use the savings plan formula to answer the following question. Your goal is to create a college fund…

A: The saving plan formula can be used to determine the fund that would be accumulated with periodic…

Q: You intend to create a college fund for your baby. If you can get an APR of 3.0% and want the fund…

A:

Q: On January 1, you plan to take a trip around the world upon graduation four years from now.…

A:

Q: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

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: 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: 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: Revere College predicts that in 18 years it will take $200,000 to attend the college for four years.…

A: Present Value  = Future value / (1+rate)^n Where, Future Value = $200000 n = 18*12 = 216 r= 9%…

Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…

A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…

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: Flora is planning ahead for a 3-month world tour to celebrate completing graduate school. The trip’s…

A: given, FV = $7000 N =4 R=5% M=12

Q: A family has $16,000 saved for college tuition. They will need $64,000 for college expenses five…

A: Time value of money is the concept that money now is worth more than the money received in future as…

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 make an annual contribution of P9,993 each year to a college fund for a niece. He is 6…

A: Annual contribution (P) = P 9,993 Period from 6th year to 19th year (n) = 13 Annual interest rate…

Q: suppose Mary wants to have exactly $200,000 available for her child's education. Find the amount…

A: Calculate the present value as follows: Present value = Future value / (1+ rate)^years. As the…

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: 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: What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it…

A: The present value of a future amount can be calculated by using this equation Present value =Future…

Q: Suppose you have estimated that you will need $2,500 per month in your retirement to meet your…

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

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: 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: When your first child is born, you begin to save for college by depositing $500 per month in an…

A: We need to compute the future value of the recurring payments every month for the period of 18 years…

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: Arnett College predicts that in 18 years it will take $⁢350,000 to attend the college for four…

A: An annual percentage rate (APR) is the interest rate to be paid each year on a loan, credit card, or…

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: 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

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: