Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years before she is in college, and Carolyn estimates she will need to save $150,000. If she earns 6% per annum, the amount that should be deposited every year for the next 18 years beginning today, is $4,853. $4,579. $4,443. $8,333.

Carolyn is helping to save for her granddaughter’s college fund. It will probably take 18 years before she is in college, and Carolyn estimates she will need to save $150,000. If she earns 6% per annum, the amount that should be deposited every year for the next 18 years beginning today, is $4,853. $4,579. $4,443. $8,333.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Revere College predicts that in 6 years it will take $150,000 to attend the college for four years. Emma has a substantial amount of cash and wishes to invest a lump sum of money for her child’s college fund. How much should Emma put aside in an account with an APR of 7% compounded monthly in order to have $150,000 in the account in 6 years? Round your answer to the nearest cent, if necessary.
9. pay the remaining of their inventory? A couple decides to save $5,000 per year for 18 years to fund their child's education. If the fund has an 8% return, how much will they have in 18 years?
- Once answered correctly will UPVOTE!!
Janet's parents want her to go to the same college that they did. They decided to pay a lump sum payment today of $126000 so she will be able to make 4 years of quarterly withdrawals. The college provide an annuity of 6%, compounded quarterly. If Janet will make her first withdrawal in 8 years, what is the size of each withdrawal?
Sara met with a financial planner and has determined that she will need $1,250,000 when she retires in 30 years. She has found an annuity that pays 5.65%, compounded monthly. What will she need to save each month, if a) Sara begins saving nowz?
Genevieve has decided to start saving up for a vacation in two years, when she graduates from university. She already has $1,000 saved today. For the first year, she plans on making end-ofmonth contributions of $300 and then switching to end-of-quarter contributions of $1,000 in the second year. If the account can earn 5% compounded semi-annually in the first year and 6% compounded quarterly in the second year, how much money will she have saved when she graduate
Brenda Young desires to have $20,000 eight years from now for her daughter’s college fund. If she will earn 4 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation. Use Exhibit 1-C. (Round time value factor to 3 decimal places and final answer to nearest whole number.)
5. You are the proud parent of a baby girl. YouTestimate that the cost of her college education 18 years from now will be about $100,000. In order to raise that money, how much should you pay semiannually into an account paying 7% compounded semiannually? (8)
Revere College predicts that in 18 years it will take $200,000 to attend the college for four years. Debbie wishes to save money for her child's college fund. How much should Debbie put aside in an account with an APR of 9% compounded monthly in order to have $200,000 in 18 years?
Jasmine has decided that she wants to build enough retirement wealth that, if invested at 6 percent per year, will provide her with $3,000 of monthly income for 30 years. To date, she has saved nothing but she still has 25 years until she retires. Jasmine believes that she can earn 6 percent on her investments until she retires. How much money does she need to contribute per month to reach her goal? O $512.93 O $863.49 O $616.27 O $722.05
Walter and Skyler wish to set up a trust fund for their new daughter, Holly, which will provide her with $2,700 at the end of every 6 months for 26 years. The first payment will be 18 years, 6 months from now and interest on the fund is 4.04% compounded semi-annually. How much should Walter and Skyler set aside today for Holly? $0.00 Round to the nearest cent
Mr. and Mrs. Megabucks would like to set up a college fund for their grandson. They want him to be able to withdraw $1,750 each month for the two years he will be in college. Their grandson is currently celebrating his second birthday. His first college withdrawal will be on his 19th birthday. The college fund will earn j12=2.4%. How much must they deposit today into the college fund? Your Answer: Answer