Parents wish to have $80,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18? Click the icon to view some finance formulas. The amount that should be set aside is $ ☐ (Round up to the nearest dollar.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A=P(1+1) A P = A = Pert nt r Y = (1+)-1 n Print Done - X
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- A father wants to set up a bank account that will pay his daughter $12,000 at the end-of-quarter (EOQ) 4 and $24,000 at EOQ 8. He will fund this account by making quarterly payments of $A from the present (time zero) through EOQ 7. If the quarterly percentage rate is 2%, what is the value $A that must be deposited into the account? Please include equations used and cashflow diagram4. Suppose you make an annual contribution of BD300 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution AGE Beginning Balance Ending Balance Deposit InterestParents the child is 18? wish to have $130,000 available for a child's education. If the child is now 6 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.)
- Parents wish to have $140,000 available for a child's education. If the child is now 10 years old, how much money must be set aside at 5% compounded semiannually to meet their financial goal when the child is 18? Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.)Suppose that you earned a bachelor's degree and now you're teaching high school. The school district offers teachers the opportunity to take a year off to earn a master's degree. To achieve this goal, you deposit $5000 at the end of each year in an annuity that pays 7.5% compounded annually. a. b. How much will you have saved at the end of five years? Find the interest. Click the icon to view some finance formulas. a. After 5 years, you will have approximately $ (Do not round until the final answer. Then round to the nearest dollar as needed.) b. The interest is approximately $. (Use the answer from part a to find this answer.)As a new parent, you decided to make annual deposits into a saving account with the first deposit being made on your child's first birthday and last deposit being made on the 15th birthday. The following withdraws are being made on the child's 18th birthday. • Complete the cash flow diagram Find the value of annual deposit that you need to make so withdraws can be made. The interest rate for the account is 8%. $3.200 $2.800 $2,400 $2.000 18 19 20 21
- You put $250 in the bank for 5 years at 12% a. if interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. b. use the future value of $1 table in the textbook to verify that your answer is correct. (https://cnx.org/contents/kg0cimBs@14.13:vq8rrTZQ@6/Time-Value-of-Money)8. 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.You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals. O -1.45 -6.95 -11.92
- Suppose you have estimated that you will need $2,500 per month in your retirement to meet your expenses and live comfortably, and that you have found or chosen a fund (account) which pays monthly interest 4% APR . What principal, or balance, will your account need to maintain in order to be able to pay you this amount each month? Round/take your answer to the nearest cent.You decide to create a savings account for your children's college education, putting $140 permonth into an account paying 6.1% compounded monthly. What will be the value of theaccount in eighteen years? (Please help by using calculator)A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $16,800 each, with the first payment occurring today, your child’s 12th birthday. Beginning on your child’s 18th birthday, the plan will provide $35,000 per year for four years. What return is this investment offering? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)