A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $16,800 each, with the first payment occurring today on your child’s 12th birthday. Beginning on your child’s 18th birthday, the plan will provide $35,000 per year for four years.

As a savings program toward their child’s college education, parents decide to deposit 100 dollars at the end of every month into a bank account paying interest at the rate of 6% per year compounded monthly. If the savings program began when the child was 6 years old, how much money would have accumulated by the time the child turns 18?

Explain  well with step  By  step  Answer.

If your parents deposited $15,000 into an account for you when you were born as part of a college savings fund and that count is earning 10% annually, how much will you have in your college savings fund on your 18th birthday?

A couple wants to set up a college fund for their child. The fund will give the child $1,000 per month for 48 months. The first withdrawal will occur when the child turns 18 years old. Assume that the college fund will earn j12=6%. a) How much money will need to be in the account on the child's 18th birthday in order to sustain the withdrawals? b) How much money should be set aside to establish the fund on the child's first birthday?

A couple wishes to establish a college fund at a bank for their five-year-old child. The college fund will earn an 8% interest compounded quarterly. Assuming that the child enters college at age 18, the couple estimates that an amount of $30,000 per year. in terms of today's dollars (dollars at child's age of five), will be required to support the child's college expenses for four years. College expenses are estimated to increase at an annual rate of 6%. Determine the equal quarterly deposits the couple must make until they send their child to college. Assume that the first deposit will be made at the end of the first quarter and that deposits will continue until the child reaches age 17. The child will enter college at age 18, and the annual college expense will be paid at the beginning of each college year. In other words, the first withdrawal will be made when the child is 18.

A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $80,000 saved up for when she goes to college in 15 years, assuming the account earns a 8% annual return. Annual deposit:

On the day his baby was born, a father decided to establish a savings account for the child’s college education. Any money that is put into the account will earn an interest rate of 8% compounded annually. The father will make a series of annual deposits in equal amounts of $5,000 on each of his child’s birthdays from the 1st through the 18th, so that he can make withdrawals from the account on the child’s 18th birthday for child's college funds. Find the amount accumulated at the end of child's 18th birthday. (Also draw the cash flow diagram).

Shawn has set up an "automatic account builder" plan with an investment company. At the end of each month, the company automatically deducts $125 from his checking account and deposits it into an account he has set up to save for his kids' college costs. If this continues for 17 years, and the account earns 6.36%, how much will his account grow to? O $3,529.31 O $45,750.23 O $3,641.05 O $42,343.38

To create a college fund, a parent makes a sequence of 20 yearly deposits of $4000 each year in a saving account, on which interest is compounded annually at 2.8%. Find the amount of annuity.