If you put $10,000 into an investment to fund your child's college education in 18 years, how much would you accumulate if you earned 10.24% per year?
Q: Jessica has identified a stock pattern showing a head-and-shoulders bottom formation and its price…
A: Head and shoulder bottom formation shows that after a long period of increase the prices are going…
Q: Give a short summary of 20 words about the topic "Pocket money
A: Pocket money is kind of extra money in the pocket which you can spend as per choice and enjoys.
Q: or has an opportunity of borrowing sh. 1000,000 to buy a machine which will only last one year and…
A: Marginal efficiency of capital is the more return on investment achieved than the normal rate of…
Q: A buyer earns $48,000 salary per year. In order to qualify for an 85 percent loan, his monthly PITI…
A: Introduction = Every person needs loan to buy his house, to run his business, education loan etc.…
Q: Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense…
A: The contribution format income statement: The contribution format income statement is a tool in…
Q: The most recent 12-month inflation forecast for the United States is 6.65 percent (from March 2022…
A: Purchasing power parity refers to the state of equilibrium of exchange rate between currencies when…
Q: A company is considering the following two dividend policies for the next five years. Year Policy #1…
A: Here,
Q: How much will $100 buy you in 20 years?
A: Inflation: It represents the increase in the prices of the cost of living for a period of time. It…
Q: d) Explain how a coffee producer can use European coffee options contracts to hedge against price…
A: Options are very good method of hedging against the spot market and loss can be minimized by option…
Q: Hack Wellington Co. is considering a three-year project that will require an initial investment of…
A: PV of Outflow = $35000 PV of Inflow under good condition = 40000*a<3> = 40000*(1-(1+i)^-n)/i =…
Q: A company estimates that it can sell 4,000 units each month of its product if it prices each unit at…
A: When 4000 units are sold: Sale Value = 4000*80 = $3,20,000 Total Cost = Fixed Cost + Unit Production…
Q: Use the following information: Stock A B Good state 12% 17% Bad state 0% -1% Assume there is 60%…
A: Given, Stock A and Stock B. Investment in Stock A is 9% and investment is Stock B is 1-9%
Q: D4) Real options make up a lower proportion of the total value of ”value stocks” than “growth…
A: Stock options are financial products that are based on the value of the underlying security.…
Q: Dr. Barrett wants to purchase a new piece of equipment for his practice. The equipment can be…
A: Payback period = Initial investment/annual cash inflows Since depreciation is a non cash expenditure…
Q: Explain why an increase in the inflation rate will cause the yield to maturity on a bond to increase
A: Bond yield to maturity is the interest an investor earns by holding the bond till maturity.…
Q: Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)…
A: Annuity refers to the fixed periodic payments made for the specified period of time. Present value…
Q: Consider a student loan of $18,000 with an APR of 6.2% for 7 Years with monthly compounding and…
A: Monthly effective interest rate = APR/12 = 0.062/12 = 0.005167 Total Term of Loan = 7*12 = 84 months…
Q: Christina is deciding whether or not to enroll in a one-year academic program at the start of 2023…
A: The internal rate of return is the rate which equates the present value of cash inflows from a…
Q: 1. An investment of PhR. 6500.00 earns the following interest per year in-0: 2=0:025, is=0:01,…
A: The interest rate gives the value with which money grow with time and interest is being accumulated…
Q: Suppose that in 2018 the price index was 120 and Ifikile purchased R35 000 worth of bonds. One year…
A: Bond Value in 2019 39,725.00 Bond Value in 2018 35,000.00 Tax Rate = 40%
Q: Which one of the following statements is correct? A. Real rates must exceed inflation rates. B.…
A: Meaning of the terms: Real rates: Real rate=Nominal rate - Inflation . So, real rates consider…
Q: Your father offers you a choice of $105,000 in 12 years or $47,000 today. If money is discounted…
A: The question is related to Time Value of money. As per time value of money present consumption is…
Q: A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has…
A: There is a difference between preferred stock and common stock. Preferred stock do not carry any…
Q: Answer true or false to the following statement and explain: “Investors engage in forward exchange…
A: The exchanging of one currency for another is known as Foreign Exchange (forex or FX). For example,…
Q: Greenfield purchased a building ten years ago for $400,000. Since then, the company has maintained…
A: The agreed value in a coinsurance clause is the amount that the insurer agrees to pay for the…
Q: The ABD Hotel's guest-days of occupancy and custodial supplies expense over the last seven months…
A: From a given limited amount of data, fixed and variable cost can be separated using high low method.…
Q: Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment…
A: Data given: Description Manufacturing Subsidiary (Singapore) Marketing Subsidiary (US) Revenue…
Q: USAir has $54 million of current assets and $58 million of noncurrent assets. It forecasts an EBIT…
A: (Note: We’ll answer Part D as it has been specifically asked.) Given : Current assets = $54mCurrent…
Q: Find the accumulated value of an investment of $32,000 for 7 years at an interest rate of 4.2% if…
A: Value of investment = 32,000 Interest rate = 4.2% Time period = 7 years The value is compounded…
Q: Consider a new machine at a packaging plant that has a first cost of $100000, operating and…
A: The equivalent annual cost is the cost of owning, operating, and maintaining an asset over its…
Q: The concept that supports the discounting of notes to their present value is: time value of money…
A: The process of assessing the present value of a payment( Lump-sum) or a stream of…
Q: Bond J has a coupon of 6.2 percent. Bond K has a coupon of 10.2 percent. Both bonds have 20 years to…
A: In the given case, bond price is the present value of future cash flows discounted.
Q: Michaela Marie invested in Home Development Mutual Fund (HDMF) Pag-IBIG MP2 worth Php 300,000 for…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: how was the trading of uwmc company in march 2022?
A: UMWC holdings stands for United Wholesale Mortgage, located in Pontiac, Michigan, is a national…
Q: Consider two savings plans: Kelly deposits $415 per month in an account with an APR of 4.2% for 15…
A: Here we can use the concept of time value of money. The concept of time value of money states that…
Q: An investor borrows a principal of £1,000,000 and agrees to an interest-only repayment at a rate of…
A: Borrowed principal amount is 1,000,000 Time period is 10 years Interest rate is 5%P.a. Interest is…
Q: How did they get net cash inflow in this problem? I don't need anything else solved, just need to…
A: Data given: Sale of prototype chips in 2021 = 595 Sale of prototype chips in 2022 = 595+85= 680 Sale…
Q: The present value of a sum of money is the amount that must be invested now, at a given rate of…
A: Solution: Present value is the amount in today’s terms and amount with interest at maturity is…
Q: Company XYZ just paid a $2 dividend. Dividends are expected to grow at 25% for 3 years. The dividend…
A: The stock price can be found using the DDM Model. Increase the dividends at the given growth rate…
Q: that to calculate the po The monthly payment on a 30 year $200,000 mortgage at 4.2% interest…
A: In case of mortgage, a series of equal payment is made for a specified period to pay off the…
Q: $230.16
A: Payment per period refers to the amount which is to be paid at equal intervals for a certain…
Q: Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is…
A: Given: Interest rate = 14% Loan = $80,000 Years = 25
Q: lowing are examples of retirement plans EXC O 401(k) O 403(b) O Traditional IRA O Roth IRAS O…
A: There are many types of retirement plans depending on amount of deposit ,period of deposit and…
Q: Comparative financial statements for Weller Corporation, a merchandising company, for the year…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: 8. Suppose a certain bond sold a volume of 2, 375, 000. If the bonds sold for $824.99, calculate the…
A: Bonds are fixed income earning instruments where the investor lends money to the company in exchange…
Q: Describe the three steps in a replacement capital budgeting project step by step in detail
A: Given, Meaning of replacement capital budgeting:- The replacement capital budgeting decision model…
Q: Abdullah buys a TV with a cash price RM6,500 by making an initial deposit of RM2,000. The balance…
A: Solution: When a loan is granted by the lender, the lender will demand equal periodic installments…
Q: Polly purchased a car. She paid ₱250,000 as down payment, and ₱15,000 payable at the beginning of…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: Yield: 5% Coupon Rate: 4% Term: 3 Yrs Frequency: Semi-Annual Face Value: PHP10,000.00 Issue Date:…
A: Price of bond is present value of coupon payment and present value of par value of bond that is…
Q: Current Price $100 Expected Price in 1 year Expected Dividend T-year T Bond yield $107.98 Beta 2.0…
A: Holding period return is referred to the total return received from holding an asset or portfolio of…
If you put $10,000 into an investment to fund your child's college education in 18 years, how much would you accumulate if you earned 10.24% per year?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You estimate a college education will be $300,000 when your child enters college in 18years. You presently have $70,000 to invest. What annual rate of interest must you earn on yourinvestment to cover the cost of your child’s college education?Assume the total cost of a college education will be $350,000 when your child enters college in 15 years. You presently have $67,000 to invest.What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?Assume the total cost of a college education will be $200,000 when your child enters college in 15 years. You presently have $40,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education
- You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your child’s collegeHow much do you need to save each year for 30 years in order to have $775,000, assuming you are investing the money in an account that earns 8%? How much of the $775,000 comes from contributions (your out of pocket costs)?You have saved $120,000 for your child to attend college. If it is in an account earning an annual rate of 6%, how much can you take out in equal payments at the end of each of the next four years to pay for their education? Answer: future value = $5,24,953.92Question: How much can you take out in equal payments at the beginning of each of the next four years to pay for their education?
- To pay for your child’s education, you wish to have accumulated $25,000 at the end of 15 years. To do this, you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 6 percent compounded annually, how much must you deposit each year to reach your goal?Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 5%. How much should you deposit monthly to accumulate $85,000 in 15 years?6. Calculating Interest Rates. Assume the total cost of a college education will be $290,000 when your child enters çollege in 18 years. You presently have $35,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?
- You calculate that you will need $75,000 in ten years to be able to pay for your daughter's college education. If you invest $20,000 today, what rate of return will you need to achieve this goal? Select one: A. Between 12% and 13% B. Between 13% and 14% C. Between 14% and 15% D. Between 15% and 16%Suppose an individual wants to have $200,000 available for her child's education. Find the amount that would have to be invested at annual rate 7%, compounded continuously, if the number of years until college is 6 years.You need to accumulate $92000 for your child's college education 19 years from now. How much do you need to save each year if you can earn 4 percent after taxes on your investment, assuming that you will make annual end-of-year payments into the account? O $2461.28 O $3324.75 O $3012.54 O $2725.12