Parents wish to have $130,000 available for a child's education. If the child is now 6 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18? Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.) HID
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- Parents wish to have $80,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18? Click the icon to view some finance formulas. The amount that should be set aside is $ ☐ (Round up to the nearest dollar.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A=P(1+1) A P = A = Pert nt r Y = (1+)-1 n Print Done - XParents wish to have $160,000 available for a child education. If the child is now eight years old, how much money must be set aside at 7% compounded semi annually to meet their financial goal when the child is 18? The amount that should be set aside is $___ (Round up to the nearest dollar.)Parents wish to have S 100000 available for a child's education. If the child is now 4 years old, how much money must be set aside at 8% compounded semiannually to meet their financial goal when the child is 18? Part 1 The amount that should be set aside is S
- Parents wish to have 140,000 available for a child’s education. If the child is now 5 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18A couple wants to set up a college fund for their child. The fund will give the child $1,000 per month for 48 months. The first withdrawal will occur when the child turns 18 years old. Assume that the college fund will earn j12=6%. a) How much money will need to be in the account on the child's 18th birthday in order to sustain the withdrawals? b) How much money should be set aside to establish the fund on the child's first birthday?A couple wants to begin saving money for their daughter's education. $16,000 will be needed on the child’s 18th birthday, $18,000 on the 19th birthday, $20,000 on the 20th birthday, and $22,000 on the 21st birthday. Assume 5% interest with annual compounding. The couple is considering two methods of accumulating the money. a. How much money would have to be deposited into the account on the child's first birthday to accumulate enough money to cover the education expenses? (Note: A child’s “first birthday” is celebrated 1 year after the child is born.) b. What uniform annual amount would the couple have to deposit each year on the child’s first through seventeenth birthdays to accumulate enough money to cover the education expenses?
- A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have 39,000$ When the child reaches the age of 18? Assume the money earns 7% interest, compounded quarterly.?round your answer to two decimal places.A) When Liam Corbett was born, his grandparents opened a 529 college savings plan for him so that he had enough money to pay for college once he turned 18. His college education is expected to cost $225,000 on the day he turns 18 years old. Determine if there will be enough in the account given the following assumptions (Show your calculations): Assumption #1: The grandparents contribute $6,200 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 2: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 3: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 9%. Assumption #4: The grandparents contribute $8,500 per year starting the day Liam is born and the account earns an average annual rate of return of 4%. Assumption # 5: The grandparents contribute…Parents wish to have 90,000 available for a child’s education.if the child is now 4 years old, how much money must be set aside at 5% compounded semiannually to meet their financial goal often the child is 18
- A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $41,000 when the child reaches the age of 18? Assume the money earns 5% interest, compounded monthly. (Round your answer to two decimal places.)Need answers and Solutions ASAP... Bob and Mary Johnson are expecting their first child. They have decided to deposit $1000 into a savings account that pays 6% interest compounded annually on the day the child is born. They will then deposit $1000 on each birthday through the child’s 18th birthday. How much money will be in the account on the child’s 19th birthday to finance a college education (Answer: $35,786)Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 7%, compounded monthly, if they want the balance to be $170,000 at the end of 18 years? (a) State whether the problem relates to an ordinary annuity or an annuity due. (b) Solve the problem. (Round your answer to the nearest cent.)