3. Shondra wishes to accumulate a college fund for her daughter by making 17 equal annual deposits be- ginning on the daughter's first birthday. The fund will be used to make four annual tuition payments beginning on the daughter's 18th birthday. The first tuition payment will be $15,000, with the subsequent payments increasing by 8% each year. Shondra earns interest on her investment at a 5% annual effective rate. Determine the minimum amount of her annual deposit. A. Less than $2,200 B. At least $2,200, but less than $2,400 C. At least $2,400, but less than $2,600 D. At least $2,600, but less than $2,800 E. At least $2,800

Palma wants to establish a fund for her granddaughter's college education. What lump sum must she deposit in an account that pays an annual interest rate of 6%, compounded monthly, if she wants to have $10,000 in 10 years?

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?

None

Shauna wishes to establish a trust fund from which her son can withdraw $50,000 every six months for 18 years, when he reaches 30 years old. After 8 years, he will receive $500,000 for college. The trust will be invested at 8.7% per annum compounded semi-annually. How large should the trust be?

A client's child will be attending college in 7 years. Assume current tuition and fees are $37, 294, and inflation for college costs averages 1.96 percent. She can earn 9.94 percent on the money she invests for this purpose. The client wants to know how much she will need to set aside today to pay the first year's tuition and fees.

Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she will earn 12 percent (compounded annually) on her money, what amount should she deposit now?

a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace decides to deposit $138,000 in a savings account on January 1 of this year. The savings account will earn 7 percent annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). b. At the end of each year, a different friend, Claire, plans to deposit $10,300 in a savings account. The account will earn 10 percent annual interest, which will be added to the fund balance at year-end. Claire will make her first deposit at the end of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. In (a), how much will be available at the end of five years? What is the total interest earned over the five years? 2. In (b), what will be the balance in the savings account at the end of the 8th year (i.e., after 8 deposits)? What is the interest earned on the 8 deposits?

Laura is saving for the college education of hertwochildren. They are two years apart in age; one will begin college in 7years, another at year 9. She estimates her children’s college expenses to be $30,000 per year per child, paid at the beginningof each college year (first payment for first child is at year 7and so on). The annual interest rate is 6percent. How much money must Laura deposit in an account each year to fund her children’s education? She will begin payments one year from today. She will make your last deposit when her oldest child enters college. Also assume that each child will take 4 years to graduate from college. (Note: This question is worth more)

Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly withdrawals of $2500, with the first withdrawal 3 months from now. If money is worth 6.1%, compounded quarterly, how much must be deposited now to provide for this trust?