Q: On a girl's 10th birthday, her father started to deposit P5,000 quarterly at the end of each term in…
A: Convert 1% compounded monthly to its equivalent interest rate for quarterly interval. Here, 'R'…
Q: After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in…
A: The future value of deposit is the value of the current deposits on a future date based on the…
Q: When Bo McSwine was 16, he got an after-school job at his parents' barbecue restaurant. His parents…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…
A: Deposit A Amount = 10,000 End of year deposits N = 10 years Deposit B Amount = 10,000 End of year…
Q: At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If…
A: It is being given that when the withdrawals of certain amounts being made over the period of time…
Q: On the day his son was born, a father decided to establish a fund for his son's college education.…
A: Annual withdrawal = 200,000 Period of withdrawal = 4 Years Interest rate (r) = 9% Number of annual…
Q: How much money did he have for retirement?
A: Future Value of annuity = A= R* (1+rm)n-1rmwhereA - future valueR - periodic paymentr - nominal…
Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: On the day his son was born, a father deposited to a trust company a sufficient amount of money so…
A: We can define effective interest rate as that rate which we will receive from investing our amount…
Q: Palma wants to establish a fund for her granddaughter's college education. What lump sum must she…
A: Computation:
Q: Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who is now 16 years old. She…
A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
Q: Jose is a member of a credit cooperative. The first P 50,000 of his savings earns interest at a rate…
A: A dividend refers to the earnings that a company earns on stocks. Stocks offer dividends to…
Q: How much money can he receive on his 18th birthday, if he decided to withdraw all the money at once?
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Mae, who are twins, just received P30,000 each for their 25th birthday. They both have aspirations…
A: Future value refers to the expected value of today's sum of money which depends on various factors…
Q: Donna is 40 years old today and she wishes to accumulate $2,240,000 by her sixty fifth birthday so…
A: SOLUTION- LET THE AMOUNT TO BE DEPOSITED ANNUALLY =X RATE OF INTEREST =6% P.A CURRENT AGE =40 YEARS…
Q: On the 7th birthday of her daughter, Anna deposited an amount in a bank peso bond that pays 1%…
A: The present value of a future sum of money or stream of cash flows with a fixed rate of return is…
Q: At the beginning of Gabe’s freshman year, His favorite uncle deposit ₱10,000 into a four-year bank…
A: Amount that will be in the account after four years can be calculated using following formula FV =…
Q: Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7%…
A: Calculation of money will be in account.
Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…
A: Compound interest refers to addition of interest to principal sum of loan or deposit.
Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…
A: Annual payment amount starting from year 18 is P10,000 Total number of payments are 5 Interest rate…
Q: When Derrick turned 15, his grandparents put $10,000 into an account that yielded 1.4% interest,…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: Allison and Leslie, who are twins, just received $20,000 each for their 27th birthdays. They both…
A: a) The computation as follows: The age at which Allison becomes millionaire is 63.38 years. Working…
Q: Since the birth of his granddaughter, 18 years ago, Kristen has deposited $300 at the beginning of…
A:
Q: Mr. and Mrs. Maglalang decide to set aside ₱ 500,000 today and place it on a bank savings account…
A: Assuming college debut happens in 18th year, Duration of the fund (n) = 18 years = 72 quarters r =…
Q: Stella has $3,000,000 in her investment fund. She wishes to withdraw $338,868 at the end of each of…
A: In the given question, the amount to be invested today is the present value of a series of…
Q: On the day the child is born, Allyson wishes to determine what lump sum would have to be paid into…
A: Here, Interest Rate (Rate) is 6% Withdrawal Amount (PMT) is Php 30,000 Time Period of Withdrawals…
Q: to adopt a charity foundation once she receives her money. She promised to donate annually to her…
A: The present value is the amount without the interest rate and which is equivalent to the all future…
Q: Steve and Ed are cousins who were both born on the same day, and both turned 25 today. Their…
A: It is vital to save for retirement in order to have sufficient funds available to meet future…
Q: Christina invested $3000 five years ago and earns 2 percent annual interest. By leaving her interest…
A: Invested 3000 N = 5 Interest rate = 2% She is earning interest in her account and the amount of…
Q: At the birth of his grandson, Jethro commits to help pay his college education. He decides to make…
A: In the given question, Php 10,400 will be deposited at the end of each 3 months in an account…
Q: llaine invested Php 50,000 in a bond fund for 3 years that pay 2.75% annually. If interest will be…
A: The bonds are paid coupon payment each period but there is withholding tax to be paid on the coupon…
Q: is thinking of establishing a fund for his daughter’s college education. He wants his daughter to be…
A: There is need of planning for savings for the education of the children so that they can study…
Q: Melissa agrees to contribute $500 to the alumni fund at the end of each year for the next 6 years.…
A: Yearly Contribution is $500. Total years is 6 Years Current Interest rate is 3.5%(Compounded…
Q: Since the birth of her daughter, 20 years ago, William has deposited $50 at the beginning of every…
A: Time period is 20 years Monthly deposit is $50 Interest rate for first 8 years is 5.10% Interest…
Q: her ninth birthday, a girl inherits $9000 which is to be used for her college education. The money…
A: Amount inherited on 9th birthday = $9,000 Number of years between 17th and 9th birthday = 8 years…
Q: Pat receives a series of four annual federally subsidized student loans, each for $5500 at 6.6%…
A: Pat receives a series of four annual federally subsidized student loans, each for $5500 at 6.6% .…
Q: Laura's parents invested $13,000.00 in a 14-year certificate for her that pays 6% compounded annual.…
A: Using excel FV function
Q: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must…
A: Using excel PV function
Q: On the day of his son's birth, a father decided to establish a fund for the boy's college education.…
A: Withdrawal on 18th birthday to 21st birthday = 4000 Interest rate per quarter = 9%/4 = 2.25% per…
Q: On a girl's 10th birthday, her father started to deposit P5,000 quarterly at the end of each term in…
A: The future value of a cash flow is the future worth of a cash flow at a rate of interest. Future…
Q: When she was 6 years old, Jane’s parents set up an annuity for her college education, with the first…
A: Since, the payments are semiannual, Number of payment periods = 2 * years Since payment will…
Q: On Sarah’s 18th birthday, she creates a trust fund to pay her a sequence of nine semiannual payments…
A: pva=A×1-11+RMM×NRM A=ANNUITY R=RATE OF INTEREST M=FREQUENCY OF COMPOUNDING N=NUMBER OF YEARS
Q: Jack made monthly contributions of $200 to his son's RESP for a total of 12 years. The contributions…
A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…
Q: Five years ago, alex loaned his son Liam $20,000 to start a business. A note was executed with an…
A: Notes: A liability account for notes payable is kept in a company's general ledger. Promise to pay…
Q: Andrew and Emma Garfield invested $7,700 in a savings account paying 8% annual interest when their…
A: Future value is the value of the present investment in the future stated point of time.
Q: A father wants to set aside money for his son's future college education. Money can be deposited in…
A: The question is based on the concept of Financial Management.
Q: Lauren is the proud mother of a new baby girl and plans tosend her daughter to college 19 years from…
A: L will send her daughter to college in 19 years. Her daughter will withdraw $21,000 at the beginning…
Q: On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…
A: Annuity is the equal stream of payment at equal interval of time. Given Information Annual payments…
Yumi's grandparents presented her with a gift of $21,000 when she was 11 years old to be used for her college education. Over the next 6 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 3.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is expected to earn interest at the rate of 4%/year, compounded annually, what will be the size of each installment?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Yumi's grandparents presented her with a gift of $22,000 when she was 11 years old to be used for her college education. Over the next 6 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 3.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is expected to earn interest at the rate of 4%/year, compounded annually, what will be the size of each installment? (Assume no interest is accrued from the point she turns 17 until she makes the first withdrawal. Round your answer to the nearest cent.)On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw 200,000 from the fund on his 18th birthday, again on his 19th birthday, again on his 20th birthday, and again on his 21st birthday. If the fund earns interest at 9% per year, compounded annually, how much should the father deposit at the end of each year, up through the 17th year? Draw cash flow diagramDemitri's parents begin saving for his college fund when Demetri is 10 years old. They invest $5,000 in a CD that earns 1.2% interest compounded annually. When Demitri turns 18, he decides to attend a local community college for two years. One year of courses costs approximately $2,700. Is there enough money available from the CD to pay for the first two years of Demetri's college education? *
- On Kenji’s first birthday, his parents deposited $12,500 into a savings account that earns a fixed rate of 8.00% and compounds interest annually. By Kenji’s 23rd birthday, his account will have accumulated3. Shondra wishes to accumulate a college fund for her daughter by making 17 equal annual deposits be- ginning on the daughter's first birthday. The fund will be used to make four annual tuition payments beginning on the daughter's 18th birthday. The first tuition payment will be $15,000, with the subsequent payments increasing by 8% each year. Shondra earns interest on her investment at a 5% annual effective rate. Determine the minimum amount of her annual deposit. A. Less than $2,200 B. At least $2,200, but less than $2,400 C. At least $2,400, but less than $2,600 D. At least $2,600, but less than $2,800 E. At least $2,800Carl is the beneficiary of a $28,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive the money over a 4-year period in equal installments at the end of each year. If the fund earns interest at the rate of 4%/year compounded annually, what amount will he receive each year? (Round your answer to the nearest cent.)
- On Chris’ 8th birthday, his great aunt gives him $200,000. His parents place the money in an investment paying 7% compounded monthly. a) Find the value of the fund on Chris’ 21st birthday. b) Find the amount of interest the fund earned.Rose is planning to adopt a charity foundation once she receives her money. She promised to donate annually to her chosen Charity Foundation to support the needs of the foster kids. The foundation will receive $l0,000 for the first six years, $12,000 for the next five years and $15,000 for each year thereafter. The donation will start one year after she receives her money allotment. If the fund earns 7.0% interest, what is the amount of the donation? Please include cashflow diagram and full formulas.When Xian was born, his father Brian deposited a sum of money for the college education of Xian. Brian approximates that when Xian enrolls in college, the annual tuition fee will be about P200,000. So for the duration of his 4-year college course, Brian needs about P800,000. How much did he deposit semi-annually in a fund that earns interest at the rate of 5.5% compounded semi-annually?
- When Derrick turned 15, his grandparents put $10,000 into an account that yielded 1.4% interest, compounded quarterly. When Derrick turns 18, his grandparents will give him the money to use toward his college education. How much does Derrick receive from his grandparents on his 18th birthday?After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in a savings account with an effective annual interest rate of 3%. She decided to make regular deposits, beginning with $1000 on her 22nd birthday and increasing by $200 each year (i.e., $1200 on her 23rd birthday, $1400 on her 24th birthday, etc.). What was the future worth of Katlyn’s deposits after her deposit on her 66th birthday?As soon as she graduated from college, Kay began planning for her retirement. Her plans were to deposit $500 semiannually into an IRA (a retirement fund) beginning six months after graduation and continuing until the day she retired, which she expected to be 30 years later. Today is the day Kay retires. She just made the last $500 deposit into her retirement fund, and now she wants to know how much she has accumulated for her retirement. The fund earned 10 percent compounded semiannually since it was established. a. Compute the balance of the retirement fund assuming all the payments were made on time. b. Although Kay was able to make all of the $500 deposits she planned, 10 years ago she had to withdraw $10,000 from the fund to pay some medical bills incurred by her mother. Compute the balance in the retirement fund based on this information.
