hat amount must be set aside on Harvey's 7th birthday which will provide 24 quarterly payments of P5,000 for school expenses, if the first payment is to be made on his 18th birthday, being a freshman in college? Assume that money is worth 6% compounded quarterly?

Q: Your parent started to deposit monthly $20,000 in the bank 2 years after birth. The bank offers are…

A: Amount deposited $20,000 monthly Rate of interest is 6%.

Q: eives a ​$8,000 gift toward a college education from her grandparents. How much will the ​$8,000 be…

A: Future value is value of the principal amount of $ 8000  after 18years at 5.6% compounded quaterly.…

Q: 5) Planning for their child's college education, Sean and Jessica opened an account paying 8.00%…

A: Given: PMT = $15,000.00 (ordinary annuity payment per year) r = 8.00% compounded yearly, which is…

Q: Rhett is about to begin college (4-year) and has received a 10-year $7,500 Federal Direct…

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

Q: You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 25 and…

A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

Q: Required: 1. If John were to deposit a single amount, how much would he have to invest on December…

A: Meaning of Present Value Present value states that an sum of money these days is well worth extra…

Q: Cyrus deposits a fixed monthly amount into an annuity account for his child's college fund. He…

A: Interest earned refers to an amount that is being earned by the investors over the amount of…

Q: Juan decided to start saving for college.  He deposited $500 into an account that earns 4% simple…

A: Amount deposited = $500 Simple Interest = 4%

Q: New parents wish to save for their newborn's education and wish to have $35,000 at the end of 16…

A: Future value of annuity is the future value of the same cash flows that takes place at the end of…

Q: A father wants to set aside money for his 5-year old son's future college education. Money can be…

A: Solution:- When an equal amount is deposited or withdrawn each period, for a number of periods, it…

Q: 4. On Jacob's first birthday, his grandparents present him with a $5000 certificate of deposit (CD)…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: What lump sum do parents need to deposit in an account earning 11%, compounded monthly, so that it…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

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

A: The concept of time value of money will be used here. Money invested in an account grows due to the…

Q: et's parents decided to pay a lump sum payment today of $135000 so she will be able to make 4 years…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: At birth of his grandson, Gregorio Sirug commits to help pay his college education. He decides to…

A: Quarterly deposit (P) = P10,400 Interest rate = 10% Quarterly interest rate (r) = 10%/4 = 2.50%…

Q: how much of the $90,000$⁢90,000 will Kevin ultimately deposit in the account, and how much is…

A: Kevin deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

Q: Mike estimates that college tuition at State University will be $25,000 per year in five years. If…

A: Present Value (PV) is a financial concept that calculates the current worth of future cash flows or…

Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…

Q: Your grandma wishes to provide P40,000.00 to your youngest brother on his 21st birthday. How much…

A: We have to find the annuity that will result into a target accumulated value at a pre determined…

Q: A father decides to invest k300 each month at 12% per year compounded monthly to pay for his 12 year…

A: Data given: pmt= k 300 r=12% (compounded monthly) n=17-12 =5 years

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: Lovely Mae’s deposit of 100,000 is placed into a college fund at the beginning of every month for 10…

A: The annuity making payments at the beginning is referred as annuity due as provided in question.…

Q: Parents wish to have 140,000 available for a child’s education. If the child is now 5 years old, how…

A: The concept of time value of money will be applied here. We have to find the amount deposited today…

Q: Mikayla and Peyton plan to send their son to university. To pay for this they will contribute 9…

A: The concept of TVM states that the money earned earlier has more value because of its…

Q: A couple is planning to finance its three-year-old son's university education. Money can be…

A: The time value of money is a concept that follows the principle that the worth of money received…

Q: At the beginning of every 3 months , college student deposits P300 in a fund that gives 12%…

A: Quarterly payment (P) = P 300 Annual interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3%…

Q: Allain Dupre wants to set up a scholarship fund for his school. The annual scholarship payment is to…

A: Here the scholarship will be paid annually for perpetual period.Present value of the perpetual cash…

Q: Parents wish to have S 100000 available for a child's education. If the child is now 4 years old,…

A: The present worth of the future requirement amount is to be found in the given case where the PV…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.