Suppose that you want to create a "college fund" for your newborn child and place $300 in a bank account at the end of each of the next 20 years. If that account earns an annual rate of return of 7%, how much will be in that account at the end of the twentieth year? A) $13,420.00 B) $12,977.53 C) $13,178.20 D) $11,828.32 E) $12,298.65

Q: Suppose Mr. Mitchell wants to set aside $3,000 at the end of each year for the next 18 years to…

A: FUTURE VALUE OF ANNUITY  Future Value of Annuity is the value of a group of regular payments at any…

Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…

A: The time value of money helps investors to take investment decisions based on present value, future…

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A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

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Q: You plan to send your first born child to College for a 4-year degree with 4 annual payments.  Your…

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

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Value of money declines with the time. Compounding and discounting are two techniques to consider…

Q: A newborn child receives a $9,000 gift toward a college education from her grandparents. How much…

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A: Time value of money: The value of money changes with time. It is the concept that worth of a dollar…

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A: PMT is a series of cash flows (annuity) and can be paid/received at the end of each period, called…

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A: Given: CF=$3500t=15 yearsr=7% i.e 0.07

Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…

A: Initial investment = $10,000 Period = 18 years Interest rate = 0.1024  Accumulated amount = ?

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A:

Q: Assume the total cost of a college education will be $224,140 when your child enters college in 12…

A: annual rate of interest refers to the rate which is charged by the lender from the borrowed on the…

Q: uppose you want to begin a college fund for your newborn child. You hope to accumulate $45,000 by 20…

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Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…

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A: The question is based on the concept present value of annuity payment Formula as, Pv=pmt*1-(1+r)-nr

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A: Future value of the amount is that amount being deposited and amount of compounded interest…

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A: First we need to determine the PV of all 4 payments using the formula below:CFn = cash flow in year…

Q: Use the savings plan formula to answer the following question.   Your goal is to create a college…

A: Total amount to accumulate is $81000 Time period is 17 years APR is 4% To Find: Monthly Investment