Your grandmother just died and left you $40,000 in a trust fund that pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account?

Q: New parents wish to save for their newborn's education and wish to have $46,000 at the end of 17…

A: Computation of yearly payment:Hence, the yearly payment is -$1,682.02.

Q: Tom and Sandy have set up a sinking fund in order to have $18,000.00 in 4 years for their child's…

A: Money to accumulate in Sinking Fund= $18,000.00 Time period= 4 years Interest rate= 6.84% compounded…

Q: Your brother has decided to ask you for advice about saving up for his teenager's college fund. He…

A: Answer: Calculation of the amount that your brother need to deposit today: The amount that your…

Q: Your parents wanted to establish a travel fund that will provide them an annual travel 1. allowance…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: New parents wish to save for their newborn's education and wish to have $40,000 should the parents…

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

Q: el started to deposit P5,000 quarterly in a fund that pays 1% compounded quarterly. How much will be…

A: The money grow with time and depending on the interest rate and compounding the future value grow…

Q: When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a…

A: FV Ordinary Annuity=C×(1+i)n−1i where, C=cash flow per period i=interest rate=0.1512…

Q: Sherry is a 25-year-old who just started working. At age 25 she received, she received $20 000 from…

A: Monthly Payment = $140 Interest Rate = 4.5% Time Period = 15 Years

Q: Your grandmother just died and left you $100,000 in a trust fund that pays 6.5% interest. You must…

A:

Q: Robert invested the profit of his business in an investment fund that was earning 3.25% compounded…

A: Interest rate = 3.25% Semi annual interest rate = [1+(0.0325/12)]6-1…

Q: In order to save for her high school graduation, Maria decided to save P200 at the end of every…

A: The correct answer with calculation is given in the below step.

Q: New parents wish to save for their newborn's education and wish to have $35,000 at the end of 16…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: Elena wanted to invest in a trust fund. She borrows from a credit corporation that charges 8% simple…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: How much money can they expect to withdraw?

A: Future value of ordinary annuity refers to the sum total value of all deposits made periodically at…

Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…

A: Compound interest refers to addition of interest to principal sum of loan or deposit.

Q: Bob has saved a total of ₱2,550,000.00 for retirement. He put the money in a mutual fund which pays…

A: We need to use annuity formula given below to calculate size of monthly withdrawal PMT…

Q: et's parents decided to pay a lump sum payment today of $135000 so she will be able to make 4 years…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to earn…

A: Present value of annuity due=(1+rate)*Annuity[1-(1+interest rate)^-time period]/rate

Q: Mr. and Mrs. Maglalang decide to set aside ₱ 500,000 today and place it on a bank savings account…

A: Assuming college debut happens in 18th year, Duration of the fund (n) = 18 years = 72 quarters r =…

Q: For her​ daughter's education, Georgina Harcourt has invested an inheritance in a fund paying 3.8​%…

A: Present Value of annuity refers to the value of regular payments of equal amounts at a specified…

Q: Janet's parents want her to go to the same college that they did. They decided to pay a lump sum…

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

Q: ) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded…

A: Future Value is $200,000 Time period is 8 years Interest rate compounded monthly is 5% To Find:…

Q: who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800…

A: Prices increase each year by the rate of inflation and may grow to double from existing levels over…

Q: per year for four years to go to college. Your father invested P16300 per year in a 10.163% account…

A: You must do proper planning for the future that must be done on time and within interest rate so…

Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…

A: Let the amount invested in the fund be $ X. Interest rate = 2.50 % compounded monthly The money is…

Q: 4. Rodel decided to sell their farm and to deposit the fund in a bank. After computing the interest,…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: When you were born, your dear old Aunt Minnie promised to deposit $1,000 in a savings account for…

A: Annual Deposit = 1000 Interest Rate = 7% No Deposit at age 7 and 11

Q: Gina has planned to start her college education four years from now. To pay for her college…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: This month you want to give your daughter $2,000.00 to help pay for University. You plan to make…

A: Provided a certain rate of interest, present value is current value of future amount of money or…

Q: Tom and Sandy have set up a sinking fund in order to have $18,000.00 in 4 years for their child's…

A: Using excel PMT function

Q: How much should be his monthly withdrawals?

A: Given in the question: Principal amount deposited = P150,000 Interest Rate = 3% Interest is…

Q: Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must…

A: The formula for  Present value of annual withdrawal is =    Present value given annuity factor (…

Q: New parents wish to save for thier newborn's education and wish to have $36,000 at the end of 18…

A: The computation of yearly payment and interest as follows: Working note: Hence, the interest is…

Q: Your Aunt Ruth has $610,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Isabella placed $5,000 in a savings account which earns 5.3% interest, compounded every year. How…

A: The formula used as follows: A=P×1+rn

Q: Matthew invested the profit of his business in an investment fund that was earning 3.75% compounded…

A: Data given: APR( monthly) = 3.75% Semi-annual withdrawal = $ 2500 No.of years to first withdrawal =…

Q: After several years of working, Katy has saved $125,000. If she invests that $125,000 in a savings…

A: Investment = $ 125000 Annual interest rate = 4% Period = 15 Years

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: Rodel decided to sell their farm and to deposit the fund in a bank. After computing the interest,…

A: Given:Withdrawl amount=P480000 for 8 yearsStarting at the end of 6 years (It is the time of his…

Q: Your aunt has $550,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000…

A: Given: Particulars Amount Present value(PV) $550,000 Interest rate (Rate) 5.50% Payment…

Q: Patricia French received $500,000 from aninsurance company after her husband’s death. Patricia wants…

A: Monthly payment: It can be defined as the payment made by the borrower on a monthly basis.

Q: 0. Tammy is saving up money for an emergeney fund. She hopes to have 4 months' worth of income…

A: The PMT function or formula can be used to determine the amount of monthly payments to accumulate a…

Q: Garrett wants to accumulate at least $35,000 by depositing $1,5 month into a fund that earns…

A: Amount to be accumulated is $35000 Monthly deposit is $1500. Rate 4.5% compounded monthly

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%

Q: A young engineering student has just graduated in college. He is able to obtain his first job and…

A: Annual deposit = P 5000 Annual interest rate = 12% Future value = $ 2,000,000

Q: Last year Jane's grandmother offered to put enough money into a savings account to generate $5000 in…

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

Q: This month you want to give your son $500.00 to help pay for University. You plan to make these…

A: In finance, a series of cash flows at equal time intervals for a specific period is known as an…

Q: Tyler invested the profit of her business in an investment fund that was earning 3.75% compounded…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…