On the birth of his first son Zachary, Brian deposited P100,000 in a trust fund that pays 3.75% interest compounded monthly. How much money is in the trust fund when Zachary reaches his 18th birthday?

Q: On Lorenzo first birthday his parents deposited 7000 into a savings account that earns a fixed rate…

A: Data given: Amount deposited on 1st birthday=$7000  (Assumed currency=$) Rate=4% (compounded…

Q: Jin decided to sell their farm and to deposit the fund in a bank. After computing the interest, they…

A: The provided information are: Withdrawal amount=P480000 for 8 years Starting at the end of 6 years…

Q: Your grandmother deposited $10,000 in an investment account on the day you were born to help pay…

A: Solution:- An amount deposited today somewhere earns interest. The amount invested in beginning is…

Q: Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account…

A: ROTH IRA stands for individual retirement account and wich use to save money for retirement. This…

Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…

A: The future value is the amount that will be received at the end of a certain period. In simple…

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: Alice needs P 4,000 per year for four years to go to college. Her father invested P 5,000 in 7%…

A: Future value of an amount is calculated as: = Amount * (1+rate)^number of periods

Q: Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: A girl inherits $30,000.00 under the rules of a will, with the condition that her guardian maintain…

A: Future Value = Future value is what money is expected to be worth in the future. Future Value…

Q: On Chris’ 4th birthday, his great aunt gives him $120,000. His parents place the money in an…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: ecardo and Bisa have a new grandson. How much money should they invest now so that he will have…

A: To calculate the investment amount we will use the below formula   Investment amount =…

Q: Exactly six years ago, Jay started investing $10,500 per year in an account that earned 5.00% p.a.…

A: To calculate how much Jay will have in his account exactly seven years from today, we can break down…

Q: On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the…

A: Annuity refers to a fixed amount taht is to be paid at every period until the rest of a person’s…

Q: A grandmother left a will to her grandson an amount of P25,000 and was deposited in a bank with a…

A: We are given- Rate=8% Present value=25000 Future value=45000 We have to calculate time period We can…

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 received an inheritance from his grandfather. Worried of spending the money unproperly, he…

A: Total amount = $3,000,000 Time = 2 years No of weeks = 52 *2                      = 104 Rate = 2%…

Q: Ji Hyun's generous grandfather invests $1,000 when she is born into an index fund that produces a 7%…

A: Calculation of money will be in account.

Q: Jason received an amount of 1000.00 from his grandpa as a birthday gift. He decides to invest the…

A: Principal Amount, P = 1,000 Interest rate, r = 10% = 0.10 Time, t = 5 years Future Value, FV = P…

Q: nna makes the following transfers in 2022:   $250,000 to Greg, her spouse, who is US Citizen…

A: The gifts are allowed upto certain limits are tax exempted but after some limits there is need to…

Q: Your newborn daughter has received a total of 8,000 in cash from various friends and relatives. If…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: jesse recieved $5,000 from his grandmother when he turned 18. if he invests it at 5.5%(12), how much…

A: The question gives the following information:

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: When Derrick turned 15, his grandparents put $10,000 into an account that yielded 1.4% interest,…

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

Q: In 2020, Jack and Eri are married. Jack earns $150,000 from his job as a finance executive. Eri…

A: Gross Income Gross income which are included the income which are derived through salary and other…

Q: um payments from his separate checking account. The beneficiary of the policy is their only child.…

A: Beneficiary refers to an individual or an entity who gains some sort of monetary value out of a…

Q: Your great-grandmother saved $100 to deposit into an account when each of her children was born,…

A: The internal rate of return (IRR) of an investment is the rate at which the present value of the…

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: 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 girl inherits $30,000.00 under the rules of a will, with the condition that her guardian maintain…

A: Using time value of money formula, we can determine the time at which the girl will receive the…

Q: A young man is the beneficiary of a trust fund established for him 21 years ago at his birth. If the…

A: Compound interest can result in exponential growth of savings or investments over time when the…

Q: how much is the 3rd investment?

A: Monthly interest rate  1st deposit = 6.5%/12 ; time=11×12=132months 2nd deposit = 7.3%/12 ;…

Q: hank deposits $100,000 into a retirement fund that earns 2.5% annual interest. When will his initial…

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

Q: Mike's parents decide to deposit an amount of money at the end of every month into a bank account…

A: Annuity is a series of equal receipts/payments made at a regular interval of time  over a fixed…

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.