Alan has five children and wants to establish Coverdell education savings accounts for them. Assuming no other ESA contributions are made for the children this year, what is the maximum amount he can contribute to the five ESAS? $2,000 $5,000 Ⓒ$10,000 $15,000
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- Assume the couple John and Helen want to fund a college education for their son, William, age 2. William will attend college starting at age of 18. He needs $90,000 available at age 18 for his college expense. The couple feels they can make 6% after-tax return annually in a 529 education fund. How much do they need to deposit today to meet their goal? Assume the couple John and Helen want to fund a college education for their son, William, age 2. William will attend 4 years of college starting at age of 18. He needs $60,000 available at age 18 for his college expense. Starting from now, the couple plans to invest $3000 to the 529 education fund at the end of each year. What rate of annual return do they need to achieve?If Jennifer contributes $500 every quarter into her superannuation fund for the next 45 years, how much will she accumulate assuming she can earn 8% p.a. and the first contribution is made immediately? Select one: a. $858,020.78 b. $652,810.16 c. $90,000.00 d. $875,181.20Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be able to withdraw $1,750 each month for the two years he will be in college. Their grandson is currently celebrating his second birthday. His first college withdrawal will be on his 19th birthday. The college fund will earn j12=2.4%. How much must they deposit today into the college fund? Your Answer: Answer
- Mr. and Mrs. Pence would like to set up a college fund for their grandson. They want him to be able to withdraw $2,250 each month for the two years he will be in college. 8. MAB 11 Their grandson is currently celebrating his second birthday. His first college withdrawal will be on his 19th birthday. The college fund will earn j12=2.4%. 14 How much must they deposit today into the college fund? Your Answer: AnswerA) When Liam Corbett was born, his grandparents opened a 529 college savings plan for him so that he had enough money to pay for college once he turned 18. His college education is expected to cost $225,000 on the day he turns 18 years old. Determine if there will be enough in the account given the following assumptions (Show your calculations): Assumption #1: The grandparents contribute $6,200 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 2: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 3: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 9%. Assumption #4: The grandparents contribute $8,500 per year starting the day Liam is born and the account earns an average annual rate of return of 4%. Assumption # 5: The grandparents contribute…Elizabeth and William want to begin saving for their child's college education. They estimate that they will need $119000 in twenty years. If they can earn 5% per annum, how much must be deposited at the end of each of the next twenty years to fund the education? O $9549 $9282 O $3599 O $3897
- 1. Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She would like the fund to be available by the time her daughter is 20. She decides on an investment that pays 10% compounded quarterly. How large must the deposit be? 6. Ms. Cruz can buy a piece of property for P6.500.000 cash or P4,000.000 down payment and P4,200,000 in five (5) years. If she has money earning 8%, converted quarterly, which is a better purchased plan and by how much?A couple wants to begin saving money for their daughter's education. $16,000 will be needed on the child’s 18th birthday, $18,000 on the 19th birthday, $20,000 on the 20th birthday, and $22,000 on the 21st birthday. Assume 5% interest with annual compounding. The couple is considering two methods of accumulating the money. a. How much money would have to be deposited into the account on the child's first birthday to accumulate enough money to cover the education expenses? (Note: A child’s “first birthday” is celebrated 1 year after the child is born.) b. What uniform annual amount would the couple have to deposit each year on the child’s first through seventeenth birthdays to accumulate enough money to cover the education expenses?Alice needs P 4,000 per year for four years to go to college. Her father invested P 5,000 in 7% account for her education when she was born. If she withdraw at the end of her 17th, 18th, 19th and 20th birthday, how much will be left in the account at the end of her 22nd birthday? P 1819 P 1700 P 1900 P 1619
- Tom and Sandy have set up a sinking fund in order to have $18,000.00 in 4 years for their child's college education. How much should be paid monthly into an ordinary annuity earning 6.84% compounded monthly so that they reach their goal? How much interest is earned during the last year? (Note: Your answer is a dollar amount and should include a dollar sign)A couple wants to set up a college fund for their child. The fund will give the child $1,000 per month for 48 months. The first withdrawal will occur when the child turns 18 years old. Assume that the college fund will earn j12=6%. a) How much money will need to be in the account on the child's 18th birthday in order to sustain the withdrawals? b) How much money should be set aside to establish the fund on the child's first birthday?6. Kevin deposits $1423.62 each quarter into an annuity account for his child's college fund in orderto accumulate a future value of $85,000 in 12 years. How much of the $85,000 will Kevin ultimatelydeposit in the account, and how much is interest earned?
