Ethan is creating a college investment fund for his daughter. He will put in $21,000 per year for the next 17 years and expects to earn a 12% annual rate of return. How much money will hisdaughter have when she starts college? Use Appendix C to calculate the answer. Multiple Choice $1,014, 538 $1,015,551 $1,027,291 $1,026,564

An investment fund is a pool of money that several people pool together to buy assets together, with…

Answered: Ethan is creating a college investment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are doing a special project for the boss and he is going to give you a $5,000 bonus when it is completed in 3 years. In the meantime, you and your partner are having a baby this year. You intend to put your bonus into a 6% investment and let it accumulate until the baby is 18 years old when you will withdraw the total amount for college expenses. How much will the fund be at the end of 18 years? O $11,983 O $116,380 O $154,503 O $179,742
Assume you are working with the foundation to fund a scholarship in your name. Currently, the foundation can earn a 5 percent return on any donations. A. How much money would you need to donate to fund a scholarship that pays $25,000 every year forever, starting one year from now? B. How much money would you need to donate if the foundation could increase their return to 7 percent on any donations?
Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4%. How much should you deposit monthly to accumulate $87,000 in 15 years? You should invest $ each month. (Do not round until the final answer. Then round to two decimal places as needed.)
Elizabeth and William want to begin saving for their child's college education. They estimate that they will need $119000 in twenty years. If they can earn 5% per annum, how much must be deposited at the end of each of the next twenty years to fund the education? O $9549 $9282 O $3599 O $3897
Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10% annual interest rate, compounded quarterly, in order to have $30,000 in the fund at the end of 10 years? Question content area bottom Part 1 They should deposit $enter your response here. (Round up to the nearest cent.)
Laura needs to invest to help with her child's college fund. How much I would she have to invest to have $63,400 after 13 years, assuming an interest rate of 2.21% compounded monthly? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. $0
Mr. and Mrs. Pence would like to set up a college fund for their grandson. They want him to be able to withdraw $2,250 each month for the two years he will be in college. 8. MAB 11 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%. 14 How much must they deposit today into the college fund? Your Answer: Answer
← A newborn child receives a $8,000 gift toward a college education from her grandparents. How much will the $8,000 be worth in 19 years if it is invested at 5.9% compounded quarterly? It will be worth $ (Round to the nearest cent.)
Find how large must the annual payments be in the subsequent 6 years(t = 5, 6, 7, 8, 9, and 10) to meet their daughter’s anticipated college costs, by using mathematical formulas (not excel) **ANS: 3782 DOLLARS
Program Mary Cooper, Sheldon's mother, who lives in east Texas, wants to help pay for her grandchild's education. How long will it take Mary to reach her goal of $180,000 if she invests $10,000 per year, earning 6 percent? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest half-year. years
Q4. Aloma, a university graduate who started a successful business, wants to start an endowment in her name that will provide scholarships to ME students. She wants the scholarship to provide $11,000 per year and expects the first one to be awarded on the day she fulfills the endowment obligation. If Aloma plans to donate $140,000, what rate of return must the university realize in order to award the annual scholarship forever? The rate of return that the university must realize in order to award the annual scholarship forever is %.
Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $12 available each year for various school and living expenses. If he earns 12 percent on his money, how much must be deposited at the start of his studies to be able to withdraw $12 a year for three years? Use Exhibit 1-D (Round time value factor to 3 decimal places and final answer to the nearest whole number.) Future value

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