Question 48 pEsther calculates that she will need about $9,600 forthe first year of tuition at college. Her grandparents willcontribute $3,000 to her tuition expenses and Estherreceived a $1,500 scholarship. She plans to save to payfor the rest. If Esther has 2 years to save, what is theminimum amount that she should save each month?O $125.42O $161.25O $98.72O $212.50Question 5Which of the following is a true statement about an8 p

Step 1:Here given that :Total tuition cost = $9600Grandparents' contribution = $3000Scholarship =…

Answered: Question 4 8 p Esther calculates that…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.12AMCP

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out tion Johnny wants to save some money for his daughter Alexis's education. Tuition costs $12,500 per year in today's dollars. Alexis was born today and will go to school starting at age 18. She will go to school for 4 years. Johnny can earn 11% on his investments and tuition inflation is 7%. How much must Johnny save at the end of each year, if he wants to make his last savings payment at the beginning of his daughter's first year of college? O a. $2,694.56. b. $2,789.04. * $2,861.65. O d. $3,176.43. OC
Raymond wants to save the college tuition fees his child will need in ten years by starting with a deposit of $7,500 today and depositing another $200 at the beginning of each month. How much will Raymond have in ten years if he gets a rate of return of 4% per annum? a. $37,201 b. $39,057 c. $40,537 d. $40,441
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Elizabeth and William want to begin saving for their child's college education. They estimate that they will need $119000 in twenty years. If they can earn 5% per annum, how much must be deposited at the end of each of the next twenty years to fund the education? O $9549 $9282 O $3599 O $3897
A new mother would like to start a college fund for her newborn daughter. She makes quarterly deposits of $400 into a college fund that earns 6% compounded quarterly for the next 18 years. How much will her daughter have available in her college fund when she turns 18? $ Round to the nearest dollar What is total amount the mother deposited into the fund over the 18 years? $ Round to the nearest dollar How much interest was earned over the 18 years? $ Use the WHOLE DOLLAR AMOUNTS you entered in as your answers above. 4 Round to the nearest dollar
Alice needs P 4,000 per year for four years to go to college. Her father invested P 5,000 in 7% account for her education when she was born. If she withdraw at the end of her 17th, 18th, 19th and 20th birthday, how much will be left in the account at the end of her 22nd birthday? P 1819 P 1700 P 1900 P 1619
The Benefit of a Higher APY Isabel Lopez from Lewiston, Idaho, who is 19 years old, recently received an inheritance of $49,000 from her grandmother's estate. She plans to use the money for the down payment on a home in ten years when she finishes her education. Right now the funds are in a savings account paying 4.0 percent APY. How much would Isabel have in ten years if instead she purchased a ten-year CD paying 6.0 percent? Round your answer to the nearest dollar. (Hint: Use Appendix A-1 or visit the Garman/Forgue companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places.
5. Calculating Present Value. Brenda Young desires to have $20,000 eight years from now for her daughter's college fund. If she will earn 4 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation. nere to search W 17 4+ 10 14 IDI 10 72 *3 #3 3 24 4. 8. 00 96 %23
Jasmine has decided that she wants to build enough retirement wealth that, if invested at 6 percent per year, will provide her with $3,000 of monthly income for 30 years. To date, she has saved nothing but she still has 25 years until she retires. Jasmine believes that she can earn 6 percent on her investments until she retires. How much money does she need to contribute per month to reach her goal? O $512.93 O $863.49 O $616.27 O $722.05
6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?
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A) When Liam Corbett was born, his grandparents opened a 529 college savings plan for him so that he had enough money to pay for college once he turned 18. His college education is expected to cost $225,000 on the day he turns 18 years old. Determine if there will be enough in the account given the following assumptions (Show your calculations): Assumption #1: The grandparents contribute $6,200 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 2: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 3: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 9%. Assumption #4: The grandparents contribute $8,500 per year starting the day Liam is born and the account earns an average annual rate of return of 4%. Assumption # 5: The grandparents contribute…

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