per year for four years to go to college. Your father invested P16300 per year in a 10.163% account for your education starting from the year you were born until you were 18. If you withdraw the P50,000 at the end of your 19th, 20th, 21st, and 22nd years to aid you in your college years, how much money will be left in the account at the end of your last withdra

Q: When you were born, your family started to deposit 1,000 USD each month in the bank. The bank offers…

A: Amount deposited each month in the bank = 1,000 USD  Annual deposited amount (PV) = 1,000 USD × 12…

Q: (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and…

A: In step 1, calculate the amount that is saved till year 17 .i.e the future value of the annuity of…

Q: You have been accepted at University. You will need $15,000 every six months (beginning six months…

A: Compound = Semiannually = 2Payment = p = $15,000Interest Rate = r = 6 / 2 = 3%Time = t = 3 * 2 = 6

Q: Your parent started to deposit monthly $20,000 in the bank 2 years after birth. The bank offers are…

A: Amount deposited $20,000 monthly Rate of interest is 6%.

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

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

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6…

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is…

Q: subsequent year until your 85th birthday. On that birthday you want to give $1,000,000 to your…

A: The time value of money acknowledges that, because of prospective earning potential, inflation, and…

Q: Your brother has decided to ask you for advice about saving up for his teenager's college fund. He…

A: Answer: Calculation of the amount that your brother need to deposit today: The amount that your…

Q: Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's…

A: We need to use compound interest formula below to calculate principal deposit today to get desired…

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: You receive a $9,000 check from your grandparents for graduation. You decide to save it toward a…

A: Investment The process of investing money in various financial assets or with financial institutions…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

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: On january 1, 2010, you put 1000.00 in a savings account that pays 6(1)/(4)% interest, and you will…

A: The time value of money is a concept in finance that evaluates the worth of cash flows at any given…

Q: You receive a $10,000 check from your grandparents for graduation. You decide to save it toward a…

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

Q: Your parents start saving for your sister's college education. She will begin college at age 18 and…

A: Present value and future value is computed by discounting or compounding an amount. Future value is…

Q: Assume the total cost of a college education will be $525,000 when your infant child enters college…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000…

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

Q: Your daughter just turned 5 years old. You plan to send her to college beginning on her 18th…

A: First, we need to determine the PV of the college expenses at age 18 using the PV of annuity due…

Q: Your son Tommy was just born today (Year 0), and you are plannjng for his college education. You…

A: The tuition fee per year is $2,500.The growth rate for the first 10 years is 4% per annum.The growth…

Q: Pretend that you are saving up for a down payment on a car or house. Pretend that we get an…

A: A savings account seems to be an account that is opened by a salaried person. It is a very basic…

Q: Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest…

A: Step 1 An inflow or outflow amount that happens at each period of a financial stream is known as a…

Q: You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: Tony Ring wants to attend Northeast College. He will need $66,000, 4 years from today. Assume Tony's…

A: Future Amount required (fv) = $66,000Interest Rate = 12%Type of Interest Compounded =…

Q: Juan decided to start saving for college.  He deposited $500 into an account that earns 4% simple…

A: Amount deposited = $500 Simple Interest = 4%

Q: ou are saving for the college education of your two children. They are two years apart in age; one…

A: Present value is the equivalent today of the future money required based on time and interest rate…

Q: You believe that you can set aside $1,200 each year for the next four years, starting immediately,…

A: Given : Interest rate = 4% compounded annually Year Payment 1 1200 2 1200 3 1200 4…

Q: How much money can they expect to withdraw?

A: Future value of ordinary annuity refers to the sum total value of all deposits made periodically at…

Q: Boatright wants to withdraw $2000 from an account at the end of year 1, $4000 at the end of year 2,…

A: Today value required in account is the present value of the future payments based on the time and…

Q: You finance your college education with a student loan. Every month, you borrow $1,000 to pay for…

A: Future value of annuity is computed as follows:-FV = A*whereFV= future value of annuityA= periodic…

Q: Show complete solution. Don't use excel for solution. You need P50,000 per year for four years to…

A: Here, the thing to be noted here is that father is investing for 19 years without any withdrawal and…

Q: You are 40 years old and want to retire at age 60. Each year, starting one year from now, you will…

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

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: 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the…

A: A down payment is an early stage payment made for a particular good purchased through financing.

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

A: Future value:The future value is a financial concept that calculates or shows the value of money in…

Q: You are trying to calculate how much money you should have at retirement. On your 55th birthday you…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: You need Php 40,000 per year for four years to go to college. Your father invested Php 50,000 in a…

A:

Q: Taurus needs P 4,000 per year for four years to go to college. His sugar mama invested P 5,000 in 7…

A: The worth of money changes with time, therefore the TVM considers the value of money according to…

Q: Your first child was just born and you want to set up an annuity due savings plan to finance her…

A: Future Value is the amount which is received by the investor at the end of some specified period of…

Q: school year. The annual interest rate is 5 percent. How much money must you deposit in an account…

A: Present value illustrates the current value of a sum of money that will be received or paid in the…