On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th birthday, again on his 19th birthday , again on his 20th birthday ,and again on 21st birthday. If the fund earns interest at 9% per year ,compounded annually ,how much should the father deposit at the end of each year, up through the 17th year ?

Q: What rate of interest compounded annually would result in receipt of $28,530 in eight years from an…

A:

Q: You've decided you will put $300 in the bank in year 1 and increase the deposit amount every year by…

A: The amount that a future sum of money is worth today, at a particular interest rate, is known as its…

Q: Bill Mitselfik borrowed ​$16,000 to be repaid in quarterly installments over the next five years.…

A: Present value refers to the value of cash receipts of payments (PMTs) in future expressed as it to…

Q: How many years will be required for a given sum of money to be 8 times the principal amount, if it…

A: Compounding refers to an asset's ability to generate returns that are then reinvested or remain…

Q: Regular payments of $2000 are made at the end of each compounding period. The account earns a rate…

A: The future value of an investment is the returns received by an individual at the given interest…

Q: John plans to make 10 equal annual deposits starting one year from now into a fund that pays an…

A: Let the John annual deposit starting one year from now is A i =10%  The cashflow diagram is shown…

Q: A child’s grandparents have opened a ₱60,000 savings account for the child on the day of her birth.…

A: Compound interest (also known as compounding interest) is interest calculated on a loan or deposit…

Q: Determine the current amount of money that must be invested at 6% nominal interest, compounded…

A: Present worth is the time value of money, which recognizes that money received or paid in the future…

Q: Find the future value after 30 years if a one-time investment of $1,000 is made at a 10% yearly…

A: Interest is the sum that the borrower pays the lender over and above the principal amount. Both the…

Q: If an investor invests a sum of $ 100 in a fixed deposit for five years with an interest rate of 15%…

A: Given the invested a amount = $100 Time period = 5 years Interest rate = 15%

Q: mechanical contractor has four employees whose combined salaries through the end of this year are…

A: Given, Amount- $250000 ROI-12% Time- 5 years

Q: Joshua's family that claimed a 1,000,000 peso prize on a Christmas party raffle decided to put…

A: Compound interest occurs when the interest earned on the principal of an investment (or loan) is…

Q: Covido deposits $750 in a savings account at the beginning of each year, starting now, for the next…

A: Solving questions with the help of formula

Q: What is the present value of $100 realized two years from now if the interest rate is 10%?

A: Present worth is the concept that describes an amount of money today is value greater than that same…

Q: A recent government study reported that a college degree is worth an extra Php 35947 per quarter…

A: Given , Extra Income quarterly = 35947  Interest rate = 6% Quarterly interest rate = 6%/4 = 1.5%…

Q: How much money will be in an account in 5 years if $20,000 is deposited now at an interest rate of…

A: Given  Principal = 20,000  Interest rate = 1.5% per month compounded yearly therefore  Interest rate…

Q: How much would your parents have to deposit each month into an account that grows at a rate of 10%…

A: Interest rate  = 10% compounded annuallyNumber of year =  3 Final amount expected = 90,000

Q: 4. An effective 12.68% per year, compounded monthly, is the closest to: B) 12% per year, A) 12% per…

A: The effective interest rate is simply the interest rate charged yearly or compounded monthly. It is…

Q: Determine the number of times interest is compounded in a year for an interest rate of 1% per…

A: When talking about frequency of compounding, it can be said that it is the number of periods,…

Q: How much would your parents have to deposit each month into an account that grows at a rate 12% per…

A: Compounding refers to the process of generating earnings or returns on an investment by reinvesting…

Q: What effective interest rate per quarter is equivalent to 10% per year compounded monthly

A: Meaning of Effective Interest Rate: The term effective interest rate is the payback…

Q: What is the present value of P500,000 to be received 20 years from now, if the principal is invested…

A: P=A(1+R)nwhere P is present value A is future value R is interest rate n is time period

Q: Calculate the effective annual interest rate for each of the following cases: (a) 12% per year…

A: The effective annual rate of interest is the genuine/real return for an investment account or any…

Q: For the cash flow diagram below, what value of x will make the total equivalent worth in year 7…

A: Given:- i=10% Total equivalent in year 7=$8000 To calculate:- Value of x=? Please find the images…

Q: Maintenance costs for a particular production machine increase by $1,000/year over the 5-year life…

A: Given,   Rise in maintenance cost = $1000/year  Time = 5 year  Initial maintenance cost = $3,000…

Q: recent government study reported that a college degree is worth an extra Php 33753 per quarter…

A: Future worth is the value of the investment at the end of the fixed time. Present worth is the value…

Q: Determine the ordinary simple interest on a 8 years loan of $ 205262 at 13.05%

A: Simple interest can be contemplated as two groups when the time is considered in terms of days. They…

Q: Samson entered into an agreement with "Lovey A & Handsome B Bank" whereby the former shall pay the…

A: Given that Samson shall pay "Lovey A & Handsome B Bank" double the amount after n years. This…

Q: Consider the following schedule of cash flows. If interest is 4% per year, compounded continuously,…

A: here we calculate the equivalent value of the cashflow by using the given cashflow so calculation as…

Q: What nominal rate per month is equivalent to an effective 1.3% per month, compounded continuously?

A: The nominal interest rate is the interest rate before inflation is factored in. Nominal can also…

Q: A bank quotes an interest rate of 4.5% per annum with quarterly (four times a year) compounding.…

A: a. The rate of continous compounding    = 4In1+0.0454   =0.045

Q: Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000…

A: Interest is the cost of borrowing money or the return earned on investment. It is typically…

Q: A recent government study reported that a college degree is worth an extra Php 35680 per quarter…

A: A series of cash flows future value will be computed as sum of the future value for the individual…

Q: For the cash flow diagram shown, determine the value of G that will make the present worth in year 0…

A: Given: PW at year 0=$2500 i=10%

Q: The present worth of all the cashflows of handmade earthen pots are shown until the end of year 8 is…

A: In this scenario, we have to find future value from present value.

Q: Payments of $1000 and $7500 were originally scheduled to be paid five months ago and four months…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: You inherited $12,000 from your Great-Uncle Michael. If you invest it and average an 8% annual rate…

A: Information given is as follows:-  P = 12,000 i = 8% n = 20 year Using this we have to find future…

Q: help please answer in text form with proper workings and explanation for each and every part and…

A: Answer: To find the present value (PV) of the given cash flow series, we need to break down the…

Q: Joseph Ray just received an inheritance of $50,000 from his great aunt. He plans to invest the funds…

A: The concept of Interest is the cost of taking money or the return on investment for money lending.…