6. Calculating Rates of Return Assume the total cost of a college education will be $235,000 when your child enters college in 18 years. You presently have $53,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?

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

A: Step 1: The question has been solved in writing. You can put it into Excel format.  (My Excel is not…

Q: ur client has asked you what would be needed to fund your 2 children’s future college costs. Assume…

A: Future planning is needed for the education of the children and you have to save for that.

Q: Your parents say they will loan you $15,000 today for college. They would like to be repaid $21,000…

A: Present value = pv = $15,000 Future value = fv = $21,000 Time = t = 10 years

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Future Value = Present Value * ( 1 + Interest rate)time period

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Value of money declines with the time. Compounding and discounting are two techniques to consider…

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

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Suppose John is going to decide whether to go to  college or find a job after high school…

A: Information Provided: Interest rate = 5% Tuition cost = $20,000 Period of tuition cost = 4 years…

Q: Assume the total cost of a college education will be $385,000 when your child enters college in 15…

A: Using excel Rate function

Q: A financial planning service offers a college savings program. The plan calls for you to make six…

A: -16300-163001+R-163001+R2-163001+R3-163001+R4-163001+R5+320001+R6+320001+R7+320001+R8+320001+R9=0

Q: education. I anticipate being able to earn 14% compounded annually fo compounded annually for years…

A: The money required today is present value of the future value of money considering the interest rate…

Q: (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated…

A: PMT is a series of cash flows (annuity) and can be paid/received at the end of each period, called…

Q: What is the amount of money you would need to invest per month over 18 years at 3% interest…

A: The monthly investment over 18 years is equal to the total cost of $44,672. It is assumed that the…

Q: John and Jessica are saving for their child's education. Their daughter is currently eight years old…

A: GIVEN   large must the annual payments be in the subsequent 6 years (t = 5, 6, 7, 8, 9, and 10) to…

Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Initial investment = $10,000 Period = 18 years Interest rate = 0.1024  Accumulated amount = ?

Q: Assume the total cost of a university education will be $90,000 when your child enters university in…

A: Compound = Monthly = 12Future Value = fv = $90,000Time = t = 6 * 12 = 72Present Value = pv = $55,000

Q: How much money would you need at the present to pay for 4 years of college tuition if the first year…

A: Cost for first year = $40,000 Cost for second year = $40,000 + $5,000 = $45,000 Cost for third year…

Q: plan you to nancial planning service off a college savings program. make six annual payments of…

A: IRR is rate of return at present value of cash outflow is equal to present value of cash inflows and…

Q: 8Assume that the cost of a college education will be $20,000 per year when your child enters college…

A: Annual cost = $20,000Number of years in college = 4 years Number of years =12 yearsCollege expenses…

Q: 11. Suppose that a young couple has just had their first baby and they wish to ensure that enough…

A: In order to find the cost of the tuition after a certain period we are required to calculate the…

Q: what rate of return must you earn on that savings to hit your goal

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: The average overall cost of a Bachelor’s degree per year is $30,500. Assuming my children are 8 and…

A: Financial planning refers to the practice of putting together a plan for the future of the…

Q: You want to begin saving for your daughter's college education and you estimate that she will need…

A: The PV of an asset is its value today based on the cash flows it provides discounted at an assumed…

Q: Assume the total cost of a college education will be $224,140 when your child enters college in 12…

A: annual rate of interest refers to the rate which is charged by the lender from the borrowed on the…

Q: 5. Suppose you want to invest for the college expenses of your children, which you estimate to be…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Suppose an individual wants to have $200,000 available for her child's education. Find the amount…

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

Q: Assume the total cost of a college education will be $325,000 when your child enters college In 18…

A: We need to use future value formula below to calculate interest rate needed to earn on deposit to…

Q: You want to begin saving for your daughter’s college education and you estimate that she will need…

A: Time value of money is one of useful concept being used in finance. It says that amount invested…

Q: mulate enough f

A: At the end of each year starting from the year 18,  Given The first FV must be received at year 18,…

Q: Present Value. You want to begin a college fund for your new born child; you hope to accumulate…

A:

Q: Saleh is considering an investment that will pay $5,000 a year for 7 years, starting one year from…

A: Given: Years = 7 Amount = $5, 000 Interesting rate = 12%

Q: college fund. It the total cost of education will be $325,000 and you want to have this amount when…

A: Information Provided: Present value = $55,000 Future value = $325,000 Term = 16 years Payment = $0

Q: Assume the total cost of a college education in Singapore will be SGD 250,000 when your child enters…

A: Annual rate of interest is the rate at which the interest amount is provided on the principal amount…

Q: Assume the total cost of a university education will be €290,000 when your child enters college in…

A: Future value = Present Value * (+rate)^No. of periods

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Given: Future value = $300,000 Present value = $60,000 Interest rate = ? Years = 18

Q: Assume the total cost of university education will be $118064 when your child enters university…

A: Future Value is that amount which will be received by the investor at some specific period of time…

Q: Compound Interest, Balance Sheet, Profits, and Capitalization Table 1. Your only child will go to…

A: Compounding is a technique through which future value of present amount is computed by using…

Q: 1) In a few short years, you will graduate and enter the workforce. Let us suppose that you and a…

A:

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: Suppose you have a 1-year old daughter and you want to provide R81 000 in 19 years towards her…

A: Interest rate is the compounding rate which is used to compound present value over a specified…