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

Q: You receive a 10-year subsidized student loan of $22,000 at an annual interest rate of 4.3%. What…

A: Using excel PMT function to calculate monthly payment.

Q: A couple wants to set up a college fund for their child. The fund will give the child $1,000 per…

A: We need to determine the value of the annuity at the present.  Given: PMT = 1000 Period of annuity =…

Q: How much money must be deposited into an account paying interest at 5% compounded annually in order…

A: Given, Rate = 5% Amount =$2000

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: How much must you put away at the end of each year

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

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: Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Your grandmother will be gifting you $150 at the end of each month for four years while you attend…

A: Monthly gift amount = $150Year = 4Discount rate = 3.7%To find: The worth of these payments on the…

Q: You've been awarded a scholarship that pays $220 a month for 5 years while you are in college. At a…

A: An annuity is a series of payments for a specific period. There are two types of annuities. One is a…

Q: (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated…

A: PMT is a series of cash flows (annuity) and can be paid/received at the end of each period, called…

Q: Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: young couple wants to have a college fund that will pay birr 30,000 at the end of each half-year for…

A: An annuity is a financial product that provides a series of regular payments to an individual over a…

Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Initial investment = $10,000 Period = 18 years Interest rate = 0.1024  Accumulated amount = ?

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: A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3…

A: A perpetuity is a series of equal payments that go on forever. The amount invested to receive the…

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: You estimate a college education will be $300,000 when your child enters college in 18 years. You…

A: The question is based on the calculation of required rate of return in future value of money…

Q: You intend to create a college fund for your baby. If you can get an APR of 3.0% and want the fund…

A:

Q: How much money should Abigail invest today into a fund that earns interest at 3.75% compounded…

A: Since interest rate is compounded quaterly and payment of annuity is made semi annually, we need to…

Q: You need P4,000 per year for four years to go to college. Your father invested P5, 000 in 7% account…

A: Initial deposit (D) = P 5000 Withdrawal in year 17 (W1) = P 4000 Withdrawal in year 18 (W2) = P 4000…

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: To pay for your​ education, you've taken out ​$28 comma 00028,000 in student loans. If you make…

A: The objective of this question is to calculate the monthly payments for a student loan of $28,000…

Q: If you deposit $7889 per year for 5-years where i= 10% per year, find F:

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

Q: You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If…

A: A series of payments made at an equal interval of time for an infinite period is called perpetuity.…

Q: To pay for your​ education, you've taken out ​$28 comma 00028,000 in student loans. If you make…

A: The objective of this question is to calculate the monthly payments for a student loan of $28,000…

Q: What should the present value of a savings account be to cover $30,000 of college expenses in 12.5…

A: Compound = Quarterly = 4Future Value = fv = $30,000Time = t = 12.5 * 4 = 50Interest Rate = r = 7.5 /…

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: In order to save for your child's college education, you want to save $300 every month for 15 years,…

A: Compound = Monthly = 12Payment = p = $300Time = t = 15 * 12 = 180Monthly Interest Rate = r = 0.4%

Q: Your parents are giving you $100 a month for four years while you are in college. At a 6% annual…

A: The objective of this question is to calculate the present value of a series of future payments,…

Q: You plan to send your first born child for a 4-year degree with 4 annual payments. Your first…

A: According to the time value rule, a sum of money today can earn an interest amount by investing it…

Q: A scholarship fund is to be set up to provide monthly scholarships of $600. If the first payment is…

A: The concept of present value indicates that the value of a future amount of money is less than its…

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

A: An annuity is a contract where a fixed amount is paid periodically. It is used to help investors…

Q: per year for four years to go to college. Your father invested P16300 per year in a 10.163% account…

A: You must do proper planning for the future that must be done on time and within interest rate so…

Q: A student needs to borrow $7,000 to pay for college. She can get a loan at an APR of 10% to paid off…

A: We need to calculate total payment by using the loan amortization formula. Fist we need to calculate…

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: monthly payments over 10 years at 5% APR interest compounded monthly, how much are your monthly…

A: Information Provided: Loan amount = $91,000 Term = 10 years Interest rate = 5% compounded monthly

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: u decided to take a study abroad for the Spring 2023 semester. You decided to save $200 each month…

A: Future value of annuity includes the amount being deposited and amount of compounding interest being…

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: You receive a 10-year subsidized student loan of $19,000 at an annual interest rate of 6.8%. What…

A: Using excel PMT function to calculate the monthly payment

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%