Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 7%. How much should you deposit monthly to accumulate $87,000 in 16 years? You should invest $_] each month. (Do not round until the final answer. Then round to two decimal places as needed.

Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 7%. How much should you deposit monthly to accumulate $87,000 in 16 years? You should invest $_] each month. (Do not round until the final answer. Then round to two decimal places as needed.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5MC: If you are saving the same amount each month in order to buy a new sports car when the new models...

See similar textbooks

Similar questions

If you are saving the same amount each month in order to buy a new sports car when the new models are released, which of the following will help you determine the savings needed? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 7%. How much should you deposit monthly to accumulate $90,000 in 15 years? ... You should invest $ each month. (Do not round until the final answer. Then round to two decimal places as needed.) ******
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?
4. Suppose you make an annual contribution of BD100 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution
Suppose you have estimated that you will need $2,500 per month in your retirement to meet your expenses and live comfortably, and that you have found or chosen a fund (account) which pays monthly interest 4% APR . What principal, or balance, will your account need to maintain in order to be able to pay you this amount each month? Round/take your answer to the nearest cent.
4. Suppose you make an annual contribution of BD300 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution AGE Beginning Balance Ending Balance Deposit Interest
Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4%. How much should you deposit monthly to accumulate $81,000 in 17 years? You should invest $ each month?
Use the savings plan formula to answer the following question Your goal is to create a college fund for your child Suppose you find a fund that offers an APR of 7%. How much should you deposit monthly to accumulate $82,000 in 12 years? You should invest $ each month (Do not round until the final answer. Then round to two decimal places as needed) 9 hp fio P11 O > 0 fre P ** ** { [ prt sc delete ←backspace 1 home num lock enter
Use the savings plan formula to answer the following question:. Suppose you find a fund that offers an APR of 5%. How much should you deposit monthly to accumulate $82000 in 17 years?
You are planning for your child's future and would like to set up a savings account for their college tuition. You suspect that you don't want to make a lump sum, so you decide to make equal monthly deposits. After calculating, you plan to have $100,000 in the account in 18 years. You found an account that gives 2% APR compounded monthly. Find the amount of your monthly deposits needed to obtain your projected future value.
* Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $120 per month into an account with an APR of 5%. Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) OA. No, because the amount that will be in the college fund, $ B. Yes, because the amount that will be in the college fund, $ is less than the goal of $65,000. " is more than the goal of $65,000. "
8. Your goal is to have a college fund for your child. Suppose you find a fund that offers an APR of 5% compounded monthly. Use Excel to create a table with months as the first column, payment in the second column and amount in account as the third. Use the table to determine how much should you deposit monthly to accumulate $85000 in 15 years.