A man who won 730,000 pesos in a lottery decided to place 50% of his winnings in a trust fund for the college education of his son. If the money will earn 14% a year compounded quarterly, how much will the man have at the end of 6 years, when his son will be starting his college education?

Q: eremiah Wood wants to set up a fund to pay for his daughter's education. In order to pay her…

A: Amount needed in 4 years (CF1) = $25,000 Amount needed in 5 years (CF2) = $26900 Amount needed in 6…

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A: Future value is value of the principal amount of $ 8000  after 18years at 5.6% compounded quaterly.…

Q: A newborn child receives a $9,000 gift toward a college education from her grandparents. How much…

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A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: ecardo and Bisa have a new grandson. How much money should they invest now so that he will have…

A: To calculate the investment amount we will use the below formula   Investment amount =…

Q: Mr. Kamal wishes to accumulate Rs. 120,000 by the end of 5 years to meet educational expenses of his…

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Q: ex has set up a sinking fund for his son's college education in 10 years. From now on, he can save…

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A: Future value:

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A:

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A: Calculation of money will be in account.

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Q: Your grandfather placed $5,000 in a trust fund for you.  In 12 years, the fund will be worth $9,500.…

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Q: Thomas Finley wishes to become a millionaire. His money market fund has a balance of $183,204 and…

A: A money market fund is mutual fund that invests in liquid financial instruments. These instruments…

Q: To save for her newborn son's college education, Lea Wilson will invest $16,000 at the beginning of…

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Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: A newborn child receives a $10,000 gift toward a college education from her grandparents. How much…

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Q: A father has decided to set aside a one time lump sum for college that will amount to $60,000 by the…

A: The objective of this question is to find out the present value of an investment that will grow to…

Q: James Smith plans to save $4,000 every year for the next eight years, starting today. At the end of…

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A: Here in this case, first, we will compute the PV of annual payment from the 10th year onwards. Then…

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A: Given: N = 24, FV = 0, PMT = 1750, rate = 2.4%/12 = 0.2

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A: The investment return rate that is used to calculate present value is called the discount rate. In…

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Q: Robert has inherited some money from his great-grandfather. He will get $5,533.00 when he graduates…

A: We can use the future value formula for compound interest:FV=P(1+r)nWhere: FV = Future value P =…

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A: Step 1: Step 2: Step 3: Step 4:

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A: The time value of money is a fundamental concept in finance that recognizes the idea that the value…

Q: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they…

A: To calculate the deposit amount we will use the present value formula as follows:   Deposit amount =…

Q: Alfredo and Brittany have a new grandson. How much money should they invest now so that he will have…

A: CONCEPT. F = P (1 +r) n where F= future value P = principal amount r= interest rate n= time period.…