Your parents invest $10,000 in a college fund when you are born. They find a fund that will return 8% per year for 18 years. When you are 18 you find a school that charges $12,000 tuition per year. Tuition increases at a rate of 11% per year (so the second year will have a tuition of $13,320) , will this money take care of four years of school? How many years of college will this take care of? Explain your answer fully.

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

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

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A: Determine the present value of the annual withdrawals after 5 year of deposit using the Excel PV…

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A: Present value and future value is computed by discounting or compounding an amount. Future value is…

Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…

A: Solution: Current annual cost is $13,000 and these costs expected to increase by 6% annually.…

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

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A: future value = 100000 interest rate (i)= 10% no of years  (n)= 18 a) now we will calculate the…

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

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A: An annuity is the sum of equal payments made for a certain period, at a particular rate of return.…

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A: GIVEN   large must the annual payments be in the subsequent 6 years (t = 5, 6, 7, 8, 9, and 10) to…

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…

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A: Here, Annual Deposits is BD100 Interest Rate is 6.5% Current Age is 4 years Last Deposit is made on…

Q: In order to pay for college, the parents of a child invest $10,000 in a bond that pays 6%…

A: Investment (P) = $ 10,000 Interest rate= 6% Semi annual interest rate (r) = 6%/2 = 3% Period = 20…

Q: Your oldest daughter is about to start kindergarten in a private school. Tuition is $30,000 per…

A: Tution fee is $30,000 per year. Time period is 13 years Tution fee increase rate is 6% per year Rate…

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

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A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

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A: Initial deposit (D) = P 5000 Withdrawal in year 17 (W1) = P 4000 Withdrawal in year 18 (W2) = P 4000…

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A: Present value of the fees for each of the 2 kids is calculated.Kid 1 (elder kid enters collect after…

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A: Amount saved = AED 20,000 Growth = 5% per year Period = 18 Future value is to be calculated of the…

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

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A: Here we will need to use the concept of time value of money.

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: 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…

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A: given data  future value = 60,000 time period = 15 years interest rate = 6% discounting to find…

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A:

Q: Your oldest daughter is about to start kindergarten in a private school. Tuition is $10,000 per​…

A: Calculation of Present Value:There are 2 issues with the annuity. The one with the current tuition…

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: You are saving for the graduation (4 years) of your two children. They are two years apart in age;…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

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: Your oldest daughter is about to start kindergarten at a private school. Tuition is $10,000 per…

A: Formula: PV cash flow=Payment×1+rn1+rn

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

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

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A: The simple interest is calculated by multiplying interest rate by principal amount for a certain…

Q: Your favorite uncle wants to give each of his favorite nieces and nephews $30,000 now while he is…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

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Q: Your cousin is currently 13 years old. She will be going to college in 5 years. Your aunt and uncle…

A: Given,  Amount required at the end of year 5 = 115,000 Interest = 3.6% per annum  Time period = 5…

Q: Your great-aunt wants to help with your college graduation party. She has just placed $5,000 dollars…

A: Future value is the expected value of the current amount at a future date at a given rate of return.…

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.

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

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%