Question - : Your child is going to college for the next 4 years. You are setting up a college fund that your child withdraws from at the BEGINNING of each 6 month period (2 withdrawls each year). Each withdrawl is $ 3000. The account pays 12% annual interest rate, compounded 2 times a year. How much money should you put in the account now?

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: 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: 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: Assume that you are planning for your child's education. You would like to make deposits every 26…

A: The concept of TVM refers to the interest-earning capability of money and is used to find the value…

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

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you…

A: FV= [C*{(1+r)^n-1]/r] + [P*(1+r)^n] Where P= Initial deposit = $500 C= Periodic payments = $170 r=…

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: An annuity due typically has a higher present value than an ordinary annuity. • True O False

A: Since you have posted a question with multiple questions, we will solve the first question for you.…

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: A student needs P4000 per year for 4 years to attend college. Her fathe invested P5000 in a 7%…

A: The present value is the cumulative value of all cash flows discounted while keeping in mind a…

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: 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 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: 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: Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year…

A: An annuity is a method of fulfilling a financial goal for a specified period of time at a defined…

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: Consider a student depositing an amount P into a savings account and then made the following…

A: Given, Amount to be withdrawn at the end of 2nd year is $20 at the end of 3rd year is $30 at the end…

Q: Suppose you make an annual contribution of BD100 each year to a college education fund for a niece.…

A: Here, Annual Deposits is BD100 Interest Rate is 6.5% Current Age is 4 years Last Deposit is made on…

Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…

A: The present value analysis is used to find out the profitability of a project. It uses the concept…

Q: Maria wants to attend Clarke University. She will need $90,000 eight years from today. Assume…

A: Amount required (FV) = $90,000 Semiannual interest rate (r) = 0.03 (i.e. 0.06 / 2) Semiannual period…

Q: A mother is thinking about funding her daughter’s medical education in 6 years when she is expected…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

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: Suppose that a young couple has just had their first baby and they wish to insure that enough money…

A: Future value refers to the future value of the expected future cash flow. It can be determined by…

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

A: Periodic deposit refers to an amount that is deposited at every period for the repayment of a loan…

Q: If your daughter is 5 and she plans to go to college or university in Canada when she is 18 years…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

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…

Q: nim to receive $3000 each month for 5 years, beginning 18 4.2% p invest the money today in an…

A: Here we will use the concept of time value of money to answer the questions.

Q: lack and Jill have just had their first child. If college is expected to cost $190,000 per year in…

A: Annual deposit refers to an amount that is deposited every year for the repayment of a loan amount…

Q: Your goal is to have a college fund for your child. Suppose you find a fund that  offers an APR of…

A: Given: Futur value "FV" = $85000 Number of years = 15 Number of months "n" = 15*12 = 180 Annual rate…

Q: nd wants to save the college tuition fees his child will need in ten years by starting with a…

A: Future value of the amount is that amount being deposited and amount of compounded interest…

Q: Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle…

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

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: 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: 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: What principal must be deposited by the parents when their child is born in order to have

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be…

A: Given: N = 24, FV = 0, PMT = 1750, rate = 2.4%/12 = 0.2

Q: 2. (a) A college student, Amy, decides to fund a retirement account with $2000 per year for 8 years,…

A: Future value (FV) could be a concept utilized in fund to decide the value of an speculation or…

Q: How much will you have in your bank account after 4 years ifyou deposit $5,000 of your high-school…

A: Solution: FV = PV×(1+r)n where, FV = Future value of a sum of money PV = present value of the same…

Q: in 18 years. You presently you earn on your investme

A: Formula to calculate the rate of interest is: r = [(A/P)^1/n - 1] Where r is the rate of interest, A…