You need P4,000 per year for four years to go to college. Your father invested P5, 000 in 7% account for your education when you were born. If you withdraw P4, 000 at the end of your 17th, 18th , 19th and 20th birthday, how much will be left in the account at the end of the 21st year?

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: Betty wants to save $500,000 in four years. She wants to make monthly deposits into an account which…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: How much must you put away at the end of each year

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Q: You need 40,000 pesos per year for 4 years to go to college. Your father invested 50,000 pesos at 7%…

A: Requirement = 40,000 per year for 4 years Initial Investment = 50,000 Interest = 7%

Q: You want to be able to withdraw $50,000 from your account each year for 20 years after you retire.…

A: Here we will first have to find the present value of annual withdrawals of $50,000 for 20 years.

Q: Suppose your parents have decided that after your graduation at the end of the year they would start…

A: The Present Value of Annuity (PVAF) is the cash value of all future annuity payments discounted at a…

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Given information: Total amount after 18 years is $43,000 Interest rate is 8% compounded quarterly,…

Q: Your parents plan to spend $20,000 on a car for you upon graduation from college. If you will…

A: Present value is a current value of future cash flows at a given rate. It is given as: P.V =…

Q: Janet's parents want her to go to the same college that they did. They decided to pay a lump sum…

A: The question is based on the concept of Present value

Q: (Refer to this word problem. , Samuel wishes to have P500,000 available for his son's college…

A: Accumulated value (F) = P 500000 t = 14 years = 28 semiannual periods r = 4.4% per annum = 2.2%…

Q: In order to save for her high school graduation, Maria decided to save P200 at the end of every…

A: The correct answer with calculation is given in the below step.

Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18…

A: Given  P=$37,000 r= 7.8% n=1 t=18 years

Q: To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next…

A: Annual deposit (P) = $2000 Interest rate (r) = 12% Period (n) = 8  Years

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

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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: You have saved $120,000 for your child to attend college. If it is in an account earning an annual…

A: given, future value = $120,000 r = 6% n = 4 years

Q: Kate deposits P5,000 to her bank account every year when she was in highschool for four years to…

A: Future worth is computed by multiplying the existing value with a given interest rate.

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A: contribution =$7000 per year  interest rate =6% Period =35 Future value FACTOR =(1+r)n-1/r…

Q: You want to be able to withdraw $35,000 from your account each year for 15 years after you retire.…

A: Given, Amount required each year after requirement us $35000. term of payment is 15 years Rate of…

Q: deposit P5,000 at the beginning of every year into an investment which earns 16% interest per year…

A: Solved using Financial Calculator  (i) Amount at the end of 4th Year SET BGN Mode in Calculator.…

Q: Your daughter will start college one year from today, at which time the first tuition payment of…

A: We need to use present value of annuity formula to calculate the amount that you need today in your…

Q: How much should the parents place at the end of each year into a savings account that earns an…

A: This problem expects the present value of 45,000.  interest = 4.8% period = 16 years   We also need…

Q: You want to be able to withdraw $45,000 from your account each year for 20 years after you retire.…

A: After retirement: payment amount = $45000 number of year = 20 rate of interest = 7%   Before…

Q: ackis planning for his son's college education to begin eightyears from today. He estimates the…

A: First we need to calculate the present value of an ordinary annuity in year 7 as the withdrawal…

Q: per year for four years to go to college. Your father invested P16300 per year in a 10.163% account…

A: You must do proper planning for the future that must be done on time and within interest rate so…

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Here, we need to calculate the present value which needs to be deposited or kept aside by the couple…

Q: This month you want to give your daughter $2,000.00 to help pay for University. You plan to make…

A: Provided a certain rate of interest, present value is current value of future amount of money or…

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Amount is the sum of the initial principal amount and interest accumulated on it during the time…

Q: After graduation you plan to work and stay for 10 years and then start your own business. You…

A:

Q: he college tuition is expected to increase with an average of 5% per year for the next 5 years. The…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: You need Php 80,000 per year for four years to go to college. Your father invested Php 100,000 in a…

A: Investment = Php 100,000 Interest rate = 7% Annual fees = Php 80,000 Number of payments = 4 Future…

Q: You are saving for the graduation (4 years) of your two children. They are two years apart in age;…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: if her dad deposits R3570,00  at the end of every six months for the next four years into a bank…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: You are saving for the university education of your two children. They are two years apart in age;…

A: Deposits should be made to make the university expenses for both children. Hence, first present…

Q: You owe $32,000 to your parents for funding some of your college fees. You promise to make 5 annual…

A: In the given question we require to calculate the interest rate parents are charging on borrowing of…

Q: o complete your last year in business school and then go through law school, you will need $20,000…

A: Calculation of Amount of Deposits and Amount of Deposits after first and last withdrawal: The amount…

Q: After paying for their children's college education, Amy and Randy have $15,000 in annual savings.…

A: Annual saving (A) = $15000 r = 7.5% per annum n = 15 years We need to find the future value of…

Q: What principal must be deposited

A: Compound interest is the amount of interest that is added with the principal amount of deposit or…

Q: You want to be able to withdraw $25,000 from your account each year for 25 years after you retire.…

A: Here, Withdrawal Amount is $25,000 Time Period of Withdrawal (Withdrawal Period)  is 25 years Time…

Q: Starting next year, Moussa Al Khatib will need $10,000 annually for 4 years to complete his…

A: Given information: Amount needed in next year $10,000 Number of years 4 Interest rate is 5%.

Q: You need P4,000 per year for four years to go to college. Your father invested P5,000 in 7% for your…

A: Value of father's investment at 17th year is the future value of money at 17th year. It is given by…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: An electrical engineer who is anticipating paying for his daughter’s college education plans to…

A: Calculate the future value of the deposits by using the EXCEL FV function as follows: Working:…

Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: This month you want to give your son $500.00 to help pay for University. You plan to make these…

A: In finance, a series of cash flows at equal time intervals for a specific period is known as an…