John would like to accumulate $100,000 by the time his son starts college in ten years.  What amount would he need to deposit now in a deposit account earning 5%, compounded yearly, to accumulate his savings goal? What if interest is compounded semiannually

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A: The PV of an investment refers to the value of the cash flows of the investment assuming that they…

Q: money should he have

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A: We need to use future value formula to calculate annual interest rateFV = PV(1+r)nwhereFV = Future…

Q: Can you please help me work out this problem in detail?   Tony Ring wants to attend Northeast…

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A: Given information Purchase of Roth IRA =$1000 Interest rate =10% per year compounded annually Time…

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A: Future Value = fv = $1,400,000Time = t = 48Interest Rate = r = 12%

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A: Given:    Investment I Investment II Amount Invested x x Interest Earned  9%   Annual Cash…

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A: Computation:

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A: Future value: Future value is $97,435.86

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A: Present value and future value is computed by discounting or compounding an amount. Future value is…

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A: First, we need to determine the PV of the college expenses at age 18 using the PV of annuity due…

Q: Pete Leary wants to attend College. Seven years from today he will need $30,000. If Pete's bank pays…

A: Present value refers to the current amount of the future payment in a specified period of time. It…

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A: An annuity refers to a cash flow series that occurs periodically and that are usually fixed and…

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A: Present value is the equivalent today of the future money required based on time and interest rate…

Q: Maria wants to attend Clarke University. She will need $90,000 eight years from today. Assume…

A: Amount required (FV) = $90,000 Semiannual interest rate (r) = 0.03 (i.e. 0.06 / 2) Semiannual period…

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A: The present worth of the future estimated spending each year will be found by using the PV formula…

Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  FV = $80,000 n = no. of compounding period 10*12…

Q: nim to receive $3000 each month for 5 years, beginning 18 4.2% p invest the money today in an…

A: Here we will use the concept of time value of money to answer the questions.

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,800 of…

A: Payment = p = $6800Time = t = 14 yearsInterest rate = r = 5.25%

Q: lack and Jill have just had their first child. If college is expected to cost $190,000 per year in…

A: Annual deposit refers to an amount that is deposited every year for the repayment of a loan amount…

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A: The perpetuity is a stream of cash flow which will be continuing forever and it will pay a certain…

Q: Linda expects to receive P35,569.22 , 9 years from now. How much should she invests for three…

A: Annuity is the series of payment made by an investor over the period of time to accumulate future…