Jayden is currently working but plans to start college in a few years For this purpose, she would need $41,950. Today he can start nvesting $1,150 monthly in an investment account that pays 4 percent compounded monthly. How long would it take him to have enough money to start college? (Round the answer to four decima points)

Jayden is currently working but plans to start college in a few years For this purpose, she would need $41,950. Today he can start nvesting $1,150 monthly in an investment account that pays 4 percent compounded monthly. How long would it take him to have enough money to start college? (Round the answer to four decima points)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $13,000 available each year for various school and living expenses. If he earns 7 percent on his money, how much must be deposited at the start of his studies to be able to withdraw $13,000 a year for three years?
Your parents will retire in 22 years. They currently have $220,000 saved, and they think they will need $2,300,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Your parents will retire in 17 years. They currently have $290,000 saved, and they think they will need $2,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.
Heather is planning to retire in 14 years. She will then need an income of $1516 at the end of every month for the subsequent 25 years. She is going to make one investment today to provide all of the money she will eventually collect. Her investments will earn 8.30% compounded monthly. How much should she invest today? Round your answer to two decimal places. Do not enter the $ sign. Sample input: 124, 340.34
Matt plans to start his own business once he graduates from college. He plans to save $2,000 every six months for the next four years. If his savings earn 8% annually (or 4% every six months), determine how much he will save by the end of the fourth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)
Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .
Sam Long anticipates he will need approximately $225,600 in 15 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent.
Holly wants to have $220,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of each year for the next 15 years if the funds can earn 4 percent. Use Appendix C to answer the question. Round your answer to the nearest dollar.$ If she can earn 5 percent, how much less will she have to invest each year? Use Appendix C to answer the question. Round your answer to the nearest dollar.$
To pay his university education, Mr. Ahmed is saving $ 1000, at the beginning of each year for the next 7 years in a Bank Muscat account paying 10% interest rate. How much will Mr. Ahmed have in that account at the end of 7th year? Mr. Ahmed need $ 17000 to pay his university fees in future, justify your suggestion to him regarding his investment in Bank Muscat?

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