A couple plans to save for their child’s college education. What principal must be deposited by the parents when their child is born in order to have$80,000 when the child reaches the age of 18? Assume the money earns 8% interest, compounded quarterly.
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A couple plans to save for their child’s college education. What principal must be deposited by the parents when their child is born in order to have$80,000 when the child reaches the age of 18? Assume the money earns 8% interest, compounded quarterly.
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- A couple plans to invest money for their child's college education. What principal must be deposited by the parents when their child turns 7 in order to have 30,000 when the child reaches the age of 18? Assume the money earns 6% interest, compounded quarterly.A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have 39,000$ When the child reaches the age of 18? Assume the money earns 7% interest, compounded quarterly.?round your answer to two decimal places.A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $42,000 when the child reaches the age of 18? Assume the money earns 5% interest, compounded monthly. (Round your answer to two decimal places.)
- A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born to have $42,000 when the child reaches the age of 18? Assume the money earns 8% interest compounded quarterly. Round your answer to two decimal places.)A couple plans to save for their child's college education. What principle must be deposited by the parents when their child is born in order to have? $39000 when the child. Reaches? The age of eighteen assume the money earns seven percent interest compounded quarterly.A couple plans to save their child's college education. What principal must be deposited by the parents when their child is born in order to have 39,000$ when the child reaches the age of 18? Assume the money earns 8%!interest, compounded quarterly. Round answer to two decimal places.
- A couple wishes to establish a college fund at a bank for their five-year-old child. The college fund will earn an 8% interest compounded quarterly. Assuming that the child enters college at age 18, the couple estimates that an amount of $30,000 per year. in terms of today's dollars (dollars at child's age of five), will be required to support the child's college expenses for four years. College expenses are estimated to increase at an annual rate of 6%. Determine the equal quarterly deposits the couple must make until they send their child to college. Assume that the first deposit will be made at the end of the first quarter and that deposits will continue until the child reaches age 17. The child will enter college at age 18, and the annual college expense will be paid at the beginning of each college year. In other words, the first withdrawal will be made when the child is 18.A couple with a newborn son wants to save for their child's college expenses in advance. The couple can establish a college fund that pays 8% annual interest. Assuming that the child enters college at age 18, the parents estimate that an amount of $50,000 per year will be required to support the child's college expenses for four years. Determine the equal annual amounts that the couple must save until they send their child to college. (Assume that the first deposit will be made on the child's first birthday and the last deposit on the child's 18th birthday. The first withdraw will be made at the beginning of the freshman year, which also is the child's 18th birthday.) O $4,775.80 O $6,016.13 O $6,138.52 O $4,609.37A couple plans to save for their child's college education. What principle must be deposited by the parents when their child is born in order to have 38? $1000 when? The child. Reaches? The age of eighteen assume the money earns nine percent interest compounded quarterly
- A father wants to set aside money for his son's future college education. Money can be deposited in a bank account that pays 8.1% per year, compounded annually. What equal deposits should be made by the father, on his son's 5th through 17th birthdays, in order to provide $6900 on the son's 18th, 19th, 20th, and 21st birthdays?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?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 7%, compounded monthly, if they want the balance to be $170,000 at the end of 18 years? (a) State whether the problem relates to an ordinary annuity or an annuity due. (b) Solve the problem. (Round your answer to the nearest cent.)
