how much money will be in their travel fund at the end of the third year?

Q: Your daughter will start college one year from today, at which time the first tuition payment of…

A: Using excel PV function

Q: How much money must you deposit in an account each year to fund your children’s education? Your…

A: Information Provided: College expenses = $45,000 Interest rate = 5%

Q: What is the monthly payments you must make on this loan?

A: Pricipal=? n=60 months Rate=12%

Q: You plan to go to Asia to visit friends in three years' time. The trip is expected to cost a total…

A: Total amount required for the trip is $ 10,000 Maturity amount of certificate of deposit = $ 5,000 *…

Q: Can you please help me work out this problem in detail?   Tony Ring wants to attend Northeast…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 5 years and will need $5,500 for the…

A: periodic payment of sinking fund formula: FV=Periodic payment×1+rmm×n-1rmperiodic…

Q: e Flores family wants to save money to travel the world. They plan to invest in an ordinary annuity…

A: Monthly deposit made over a period of time grows into large amount due to power of compounding.

Q: You wish to save money on a regular basis to finance an exotic holiday to a 1. country of your…

A: We can you raise at the end of the five years : Deposit GHS1,000 annually, at the end of each year…

Q: A student plan to deposit $2,000 in the bank now and another $4,000 for the next 3 years. If he…

A: Effective interest rate is 8% Amount deposited now is $2,000 Amount deposited for next three years…

Q: Stafford loans are the most popular formof student loan in the United States. The current interest…

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

Q: You need 40,000 pesos per year for 4 years to go to college. Your father invested 50,000 pesos at 7%…

A: Requirement = 40,000 per year for 4 years Initial Investment = 50,000 Interest = 7%

Q: The Martinez family wants to save money to travel the world. They purchase an annuity with a monthly…

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

Q: How much will you have at the end of 5 years in a European vacation account if you deposit $200 a…

A: Future value of the account with $200 deposited every month for a period of 5 years at a rate of 12%…

Q: James and Kate would like to have $30,000 in 6 years in order to purchase anew mini van. What amount…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: The Pirerras are planning to go to Europe 2 years from now and have agreed to set aside $190/month…

A: Concept: The future value is defined as the current asset that is based on the future date depending…

Q: The Pirerras are planning to go to Europe 2 years from now and have agreed to set aside $150/month…

A: Given Periodic payment (P) = $150 per month Rate of interest (r) = 4% = 0.04 per year = 0.0412 per…

Q: Craig is planning for a holiday in Asia when he graduates from university in 3 years. He estimates…

A: Here, Amount of Monthly Deposit is $250 Interest Rate is 2.4%  Compounding Period (m) is Monthly i.e…

Q: John Rebel opens a special investment account for a major future business purchase. He plans to make…

A: We have been given the accumulated amount at the end of 20 years, which is the future value of…

Q: Truman is saving up for a $7,000 trip to Fiji. If his bank account earns 5.8% compounded monthly and…

A: Final amount required = $7000 Interest rate = 5.8% per annum  Semiannual deposit (A) = $450 Let n =…

Q: A student plan to deposit P1, 500 in the bank now and another P3, 000 for the next 2 years. If he…

A: Year Deposit Interest Balance 1. 1500 150 1650 2. 3000 165 + 300 5115 3. 3000 511.5 + 300…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.  Note:…

A: We need to use excel formulas to calculate above requirements.

Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…

A: The amount at the end of the fifth year is the future value of the payments. The future value is the…

Q: A young student wishes to go on a trip around Asia ten years from now. To prepare for such travel,…

A: Future value of money is considered as the sum of money received after a period of time at certain…

Q: Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s…

A: The present value function or formula can be used to derive the present value of a future sum or…

Q: When you retire 40 years from now you plan to make 10 withdrawals from your savings account. You…

A: Annuity refers to series of equalized payments that are received or paid either at start or end of…

Q: It is likely that plane tickets will increase 6.5% in each of the next three years. The cost of the…

A: The present value of the future money required considering the interest rate and period of the money…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.  Note:…

A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: You want to save the down payment required to purchase a vacation home at the end of four years. If…

A: FUTURE VALUE OF ANNUITY  (FVA) FORMULA: FVA=A×1+rn-1r where, r=rate of interest n = number of years…

Q: Payments of Ordinary Annuities Ryan wants to get together $40 000 to purchase the first house in his…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Three years from now, a couple plans to spend 4 months traveling in China, Japan, and Southeast…

A: A future value (FV) of an annuity due represents periodic cash flows starting at the beginning of…

Q: Sofia wants to start saving immediately for a trip to Hong Kong one year from now. She wants to…

A: An annuity due is a series of equal cash flows made at the start of each period. The future value of…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly.  Note:…

A: We will apply the formula for calculating the future value of the money so that we can calculate the…

Q: Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends…

A: Amount accumulated includes the periodic payments and the interest accumulated on the payments. In…

Q: finance a vacation in 4 years, Elsie saves $370 at the beginning of every six months in an account…

A:

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 5 years and will need $9,500 for the…

A: Calculations: Future value of Annuity. Formula = P{ ( 1+r) N - 1 / R } P = quarterly payments. R =…

Q: The Pirerras are planning to go to Europe 2 years from now and have agreed to set aside $170/month…

A: The present values and future values of a sum of money are ascertained with the help of the time…

Q: Your RRSP will pay an average of 7% per year After you retire when you are 68 years old you plan to…

A: EXCEL FORMULA:

Q: Oliver currently has $2,200 in a savings account paying 4.0% interest. He has a goal of taking a…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: You are planning to save for your retirement during the next 30 years. You want to be able to…

A: EAR = (1+apr/n)^n - 1 EAR = (1+8%/12)^12 - 1 = 8.299951% Now let us find out the present value of…

Q: (a) Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when…

A: Savings refers to amount held by an individual after discharging all expenses as taxes, rent,…

Q: A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8…

A: Time value of money refers that, a sum of money today has more value than the same amount received…

Q: The Nelson family wants to save money to travel the world. They plan to invest in an ordinary…

A: Annuity means a series of finite number of payments which are the same in size and occurred at equal…

Q: If you save $25 per week by bringing your lunch to school for 4 years, 12 months per year, and you…

A: There are two types of annuity that we could calculate: Ordinary annuity and Annuity due. The…

Q: In three years you plan to take a family vacation to Florida at an estimated cost of $3500. If you…

A: The amount that need to be invested today can be calculated by using the present value formula. The…