A man planned to endow P 1 million to his son on his son's 21st birthday. How much is his semi-annual deposit in a special account that earns 5% compounded quarterly if the first deposit was made when the son was 4 ½ years old?
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Can you please help me answer question no. 02? Thanks!!! The course subject is
NOTE: Please include a cash flow diagram if possible. Thanks!
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Solved in 4 steps with 1 images
- 2. Manuel is preparing for an income fund for his retirement. He wants to receive ₱ 15 500 at the beginning of each month for the next 25 years. The income fund pays 10.5% per year compounded monthly. How much must Manuel deposit now to pay for the annuity?a) A man is planning to finance their 5 year old-sons. Money can be deposited at 8% compounded quarterly. What quarterly deposit must be made from the son's 5th birthday to his 18th birthday to provide $50,000 on each birthday from the 18th to the 23rd.2. A father wishes to provide P4,000 for his son on his 21st birthday. How much should he deposit every 6 months in a savings bank which pays 3% compounded annually, if the first deposit is made when the son is 3 years old?
- c). If the father decides to deposit a single amount now instead of K300 at the end of each month, how much should he deposit now at 12% per year to enable him pay for his sons's birthdayToday is a Tamara's 25th birthday, she decided to deposited a 14500 at a rate of 12% per annum to her personal account. If she increases his deposit by 10% each year until the 30th birthday, find the present worth of her money. (2 decimal places only, rounded off) Amount -A child deposits his birthday money of $350 into an account that pays 5.6% interest compounded quarterly. How much money will he have in the account 25years later?
- 7.) A man deposited P5,000 on the date his son celebrated his 1st birthday. If money is worth 10% compounded semi-annually, what is the maximum amount the son can withdraw on his 21st birthday? (whole number)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 birthdayOn the day his son was born, a father deposited to a trust company a sufficient amount of money so that his son could receive money in the future. There was a provision that the son can withdraw an amount of P10,000 each year for 3 years starting on his 18th birthday and P15,000 eight months after the last withdrawal. The interest rate is 5% compounded monthly. 1. What is the effective interest rate? 2. How much did the father deposit? 3. How much money can he receive on his 18th birthday, if he decided to withdraw all the money at once?
- A father wishes to provide P4,000 for his son on his 21st birthday How much should he deposit every 5 months in a savings bank which pays 3 compounded semi-annually, if the first deposit is made when the son is 3 1/2 years old? Answer: P86.444. On retirement, Gilbert finds that his share of a pension fund is P1 500 000. If the fund is invested at 6% compounded quarterly, how many years will Gilbert expect to receive P30 to 0 every three months from his investment? 5. At the end of every 6 months for 5 years, Richard deposits P5 000 in a trust fund paying 6% compounded semiannually for his daughter's education. He then allowed the fund to accumulate at the same interest rate for 5 more years without making any more deposits. How much is in the fund after 10 years?A young engineer wants to provide his newly born daughter a lump sum of P 2.0M when she graduates college at the end of 21 years. To achieve this he deposits at the end of every month a certain amount in a fund that earns 12% compounded monthly. How much is the monthly deposit?