A mother is thinking about funding her daughter’s medical education in 6 years when she is expected to enrol at UWI, St. Augustine. She opens a special savings account, where she can receive a lump sum in 6 years.  If she is desirous of receiving $50,000 in 6 years when her daughter is matriculating, how much would you advise her to deposit in the savings account monthly if annual interest rate is 7%?  Show all working.

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A: We need to use compound interest formula to calculate interest and fund value after a particular…

Q: (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and…

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Q: Your brother has decided to ask you for advice about saving up for his teenager's college fund. He…

A: Answer: Calculation of the amount that your brother need to deposit today: The amount that your…

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A: The concept of TVM refers to the interest-earning capability of money and is used to find the value…

Q: A couple plans to invest money for their child's college education. What principal must be deposited…

A: Present Value = Future Value / [ 1 + Peroidic Interest rate ]Number of periods

Q: Josie wants to be able to celebrate her graduation from CSULA in 5 years. She found an annuity that…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: Your son Tommy was just born today (Year 0), and you are plannjng for his college education. You…

A: The tuition fee per year is $2,500.The growth rate for the first 10 years is 4% per annum.The growth…

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A: The Present Value of Annuity (PVAF) is the cash value of all future annuity payments discounted at a…

Q: Arthur wishes to have 80,000 in her bank account. How much suould she deposit in a bank account that…

A: the answer with complete calculation are as follows

Q: Megan Berry, a freshman horticulture major at the University of Minnesota, has some financial…

A: The present value is calculated by discounting the future value received over the period of time. An…

Q: ou are saving for the college education of your two children. They are two years apart in age; one…

A: Present value is the equivalent today of the future money required based on time and interest rate…

Q: A man wants to set up a 529 college savings account for his granddaughter. How much would he need to…

A: Annual Deposit is that amount which is required to deposit by investor every year for receiving the…

Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18…

A: Given  P=$37,000 r= 7.8% n=1 t=18 years

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A: Tution fee is $30,000 per year. Time period is 13 years Tution fee increase rate is 6% per year Rate…

Q: Imagine you are a financial advisor to Valerie VanNess. Ms. VanNess wants to retire in 25 years. She…

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Q: To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next…

A: Annual deposit (P) = $2000 Interest rate (r) = 12% Period (n) = 8  Years

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Q: We have to calculate her monthly payment.

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A:

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A: When a payment is made repeatedly then it is referred to as Annuity. Annuity is of two types: 1.…

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A: 1) For a period of 45 years (65-20) an amount of $1095 is deposited in the brokerage account each…

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A: First we need to determine the PV of all 4 payments using the formula below:CFn = cash flow in year…

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Q: Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle…

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Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…

A: Annuity Due: It is  an annuity where payment is due immediately at the start  of each period.

Q: The parents of a 3-year old child decide they need to start saving for their child's college fund.…

A: Compound = Monthly = 12Future Value = fv = $22,000Time = 15 YearsAnnual Percentage rate = 3.4%

Q: Your daughter needs to be able to draw $50,000 a year from her college savings fund (you started…

A: Introduction:   Future value is the worth of an asset at a future point in time based on its…

Q: Your grandmother loves you and wants you to get a graduate degree.  She promises to pay you $1,225…

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Q: As a savings program toward their child’s college education, parents decide to deposit 100 dollars…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A) When Liam Corbett was born, his grandparents opened a 529 college savings plan for him so that he…

A: Year Assumption 1 Cumulative savings 0 USD 6,200 USD 6,634 1 USD 6,200 USD 13,732 2 USD 6,200…

Q: Tala McLouf, a 21-year-old BBA graduate, likes to plan for her future ahead, and would like to save…

A: Since the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.