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If you invest $11750 in an RESP for your child when they are 5, how long will it withstand quarterly withdrawals of $1200, assuming 5.4% compounded annually and they make their first withdrawal on their 18th birthday.
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- On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw $5000 per year for five years. If the first withdrawal will be on the child's 18th birthday, how much should the parent deposit? The rate is 5% annually.To accumulate $100,000 for your child's 18th birthday, you need to invest a certain amount annually, excluding the 5th birthday deposit. The first deposit is made the day your child is born. To find this amount (X), considering a 8% annual rate of return:Suppose you wish to invest in an annuity so that you will have $120,000 at some future date for your child’s education. You call several institutions and find that the best interest rate is 5.85% compounded monthly. In addition, you wish to make $350 monthly installments, with payments made at the end of each period. If you expect to attain this goal and give your child the $120,000 by his/her 18th birthday, about how long after he/she is born do you need to start investing in the annuity? Type an explanation and/or the calculations used to arrive at your answer. Construct the payment schedule for the first 6 payments by filling in the table below: period interest cum. int. principal balance 0 1 2 3 4 5 6
- Siri plans to retire when her simple annuity savings account has enough money to receive 10000.00 per month for 20 years starting at the end of her first month after her retirement. she starts saving 4420.00 per month. Calculate when should Siri retire from today if her savings account pays 4.9% compounded monthly. Round to the nearest year.After the birth of your first child, you decide to buy a life insurance policy for yourself but can't decide how much to buy. In the event of your untimely death, you estimate that the life insurance money can be invested in an account earning 8% interest compounded monthly. You would like your child to get a monthly payment of $1,500.00 for 18 years.How much should your life insurance policy be worth in order to achieve your goal? I should get a life insurance policy that is worth $_______To pay for your child's education, you wish to have accumulated P15,000 at the end of 15 years. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 6 percent compounded annually, how much must you deposit each year to obtain your goal?
- A couple decided on the following saving plan for their newborn child 0 years old. Each quarter after the child is born, they will deposit $2,125 into a savings account paying 7.35% interest compounded quarterly. How much money will be in the account when the child turns 18? Hint: Total of 18 years. Round answer to nearest cent.Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 5%, compounded monthly, if they want the balance to be $160,000 at the end of 18 years?When your son is born you want to determine what lump amount would you have to be paid into an account bearing interest of 10%/yr to provide withdrawals of $10,000 on each of your son's 18th, 19th, 20th, and 21st birthday
- The parent wishes to prepare the future of their 10 year old son. Determine the monthly savings that the parent should make with interest of 8.12% per annum to amount P1,200,000.00 at the time his son will be 18.To pay for your child’s education, you wish to have accumulated $25,000 at the end of 15 years. To do this, you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 6 percent compounded annually, how much must you deposit each year to reach your goal?Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 5%, compounded monthly, if they want the balance to be $200,000 at the end of 18 years? Solve the problem. (Round your answer to the nearest cent.)
