if you deposit $500/month into a college fund with APR 4.5%, how much do you have after 18 years of payment?

Q: suppose you decide to invest 5,000 to support your retirement plans, in 30 year time. A private fund…

A: Compound interest is a financial concept where the interest earned or charged on an investment or…

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

A: Here, Future value (FV) = 22,000 Time period = 15 years  Interest rate = 3.5% To Find: Present value…

Q: After graduation, you decide that you can pay $203.24 per month extra on your student loan (…

A: The objective of this question is to determine how many years early you will be able to pay off your…

Q: You plan to invest $1,200 at the end of year 1, $2,000 at the end of year 2, and $3,700 at the end…

A: Given data; Amount deposited at the end of year 1 = $1200 Amount deposited at the end of year 2 = $…

Q: Our clients saved $2,500,000 for retirement.  They wish to withdraw $20,000 from the fund each month…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent…

A: Interest received at the end of each year will result in the compounding effect on the deposit at…

Q: David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund…

A: The concept of TVM states that the money received earlier can earn interest which makes it more…

Q: 4. Suppose you make an annual contribution of BD300 each year to a college education fund for a…

A: An annuity: An annuity is a fixed, constant contribution that is made at fixed intervals over a…

Q: Explain which information you would need to take into consideration when deciding whether to receive…

A: Here we will take into consideration the concept of time value of money. As per the concept of time…

Q: Use the savings plan formula to answer the following question. Your goal is to create a college fund…

A: The time value of money is beneficial to shareholders as it emphasizes the importance of receiving…

Q: New parents wish to save for their newborn's education and wish to have $35,000 at the end of 16…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: Given the following cash flows for two mutually exclusive projects, and a required rate of return of…

A: Npv is also known as Net present value. It is a capital budgeting technquie. Which Help in decision…

Q: If your trust fund promises to pay you $25, 000 on your 24th birthday (6years from today) and earns…

A: Present Value is the current worth of an amount to be received in future. To calculate the present…

Q: How much would you need to be deposited into savings account today earning 3.5% compounded annually…

A: The quantum of funds that will lead to a perpetuity of $ 100 a year, needs to be determined.

Q: What lump sum do parents need to deposit in an account earning 11%, compounded monthly, so that it…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: You save $800 a year into a 401(k) account that you invest in a mutual fund earning 9% per year.…

A: Given, Amount saved every year is $800 Rate is 9% Number of years is 25.

Q: Cynthia wants to accumulate at least $40,000 by depositing $1,200 at the end of each month into a…

A: The concept of TVM states that the money received earlier can earn interest which makes it more…

Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that will provide $3,000 at…

A: PV is the present value of the annuity,PMT is the payment made at each period (in this case,…

Q: A retired couple plans to supplement their Social Security with interest earned by a $210,000…

A: Compound interest is a method of accumulating interest in which the amount earned in a period is…

Q: What lump sum do parents need to deposit in an account earning 5%, compounded monthly, so that it…

A: Compounded:- Compounding is the process of reinvesting an asset's earnings, whether capital gains or…

Q: Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that…

A: a.Future Value of annuity = $320,000 Period, n = 39 years Interest rate per period, r = 7% Using the…

Q: Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in…

A: Ordinary Annuity According to given information woman deposits the amount at the end of each month…

Q: A family wants to have a $130,000 college fund for their children at the end of 19 years. What…

A: This pertains to the concept of time value of money. Amount deposited periodically is an annuity.

Q: Lovely Mae’s deposit of 100,000 is placed into a college fund at the beginning of every month for 10…

A: The annuity making payments at the beginning is referred as annuity due as provided in question.…

Q: A family wants to have a $130,000 college fund for their children at the end of 17 years. What…

A: Information Provided: Future value amount = $130,000 Interest rate = 7.10% compounded quarterly…

Q: Use the savings plan formula to answer the following question. Your goal is to create a college fund…

A: The FV of an investment refers to the cumulative worth of the cash flows of the investment at a…

Q: Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: A family want to have a $213,000.00 higher education fund for their children at the end of 19 years.…

A: An annuity refers to a payment series that is provided in exchange for a lump sum payment. It is…

Q: What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

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: Use the savings plan formula to answer the following question. Your goal is to create a college fund…

A: Compound = Monthly = 12Interest Rate = r = 4 / 12 %Future Value = fv = $87,000Time = t = 15 * 12 =…

Q: You want to make 5 equal deposits into an account paying 7.5 percent so that your child can take out…

A: PV of annuity refers to the present value of a series of equal cash flows received or paid at…

Q: On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent…

A: Compound interest:In compound interest syatem interest is computed may be in months, quarterly, half…

Q: Suppose you make an annual contribution of P9,993 each year to a college fund for a niece. He is 6…

A: Annual contribution (P) = P 9,993 Period from 6th year to 19th year (n) = 13 Annual interest rate…

Q: At the beginning of every 3 months , college student deposits P300 in a fund that gives 12%…

A: Quarterly payment (P) = P 300 Annual interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3%…

Q: You deposit $1,000 in a fund at the end of each year for a 10- year period. The fund pays 5%…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…