Your friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by answering their respective questions. For each question:Estimate without using a table, calculator, etc. Document the “step-by-step” detail showing them how you solved the question. NOTE: To solve use one of the following:EXCEL Include all the detail steps for whichever tool you choose. For example, if using EXCEL show all formulas (copy so reader could duplicate your work). If using a business calculator, in detail in proper order show numbers and buttons you input to obtain your answer. Provide a one to three sentence written explanation to your friend explaining the basic time value of money concept(s) impacting the solution. **Saving for My Kids' College**I want to help my three kids pay for college. My partner and I have agreed to provide $100,000 to each of our kids. We haven’t started saving yet, but my kids will be attending college as follows:**Kid #1** – Is six years old…assume we have 12 years to accumulate $100,000.**How much will I need to put in each month if I earn 6% interest?**The image contains an empty table divided into three sections, labeled A, B, and C. Sections A and C are composed of blank rows and columns, while Section B is filled with a gray shaded area, possibly indicating a calculation area for monthly savings or interest accrual. No specific data appears in these sections, suggesting they are meant for user input or calculations.

Time value of the money is the value of money in hand which has worth more than the same amount of…

Answered: Kid #1 - Is six years old...assume we…

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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Your friends were excited to hear you have chosen accounting for a career. They have several practical questions regarding money and interest (time value of money). Please assist your friends by answering their respective questions.

For each question:

Estimate without using a table, calculator, etc.

Document the “step-by-step” detail showing them how you solved the question.

NOTE: To solve use one of the following:

EXCEL

Include all the detail steps for whichever tool you choose. For example, if using EXCEL show all formulas (copy so reader could duplicate your work). If using a business calculator, in detail in proper order show numbers and buttons you input to obtain your answer.

Provide a one to three sentence written explanation to your friend explaining the basic time value of money concept(s) impacting the solution.

**Saving for My Kids' College**

I want to help my three kids pay for college. My partner and I have agreed to provide $100,000 to each of our kids. We haven’t started saving yet, but my kids will be attending college as follows:

**Kid #1** – Is six years old…assume we have 12 years to accumulate $100,000.

**How much will I need to put in each month if I earn 6% interest?**

The image contains an empty table divided into three sections, labeled A, B, and C. Sections A and C are composed of blank rows and columns, while Section B is filled with a gray shaded area, possibly indicating a calculation area for monthly savings or interest accrual. No specific data appears in these sections, suggesting they are meant for user input or calculations.

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