uppose you want to begin a college fund for your newborn child. You hope to accumulate $45,000 by 20 years from now. If a current investment opportunity yields 6%, how much must you invest in a LUMP SUM today to have the $45,000 when needed in 20 years? $14,900 $13,200 $136,200 $14,000 $144,30

Q: 8)Justin is twenty years old and has saved 50,000. He can invest it in a real estate venture that…

A: The worth of a present asset at a point in the future depending on an estimated rate of growth is…

Q: You want to endow a scholarship that will pay $ 8 comma 000$8,000 per year​ forever, starting one…

A: We are given the following data -Annual payment (C) = $8000Discount rate (r) = 4% or 0.04(i) Amount…

Q: How much money should I expect to receive in 10 years if I invest $585 every year for 10 years at…

A: Accumulated value of an annuity needs to be determined. This is time value of money (TVM) concept…

Q: Use the following to answer 19-20: You are going to receive a $16,000 scholarship at the end of 3…

A: "As per the Q&A guidelines, if multiple questions are asked at once then the answer for the…

Q: Melanie will invest $7,000 per year for the next 32 years. At a rate of 8% per year, how much money…

A: Annual investment = $7,000Interest rate = 8%Number of years = 32 years

Q: You want to endow a scholarship now that will pay $12,000 per year forever, starting the first award…

A: An annuity is a series of periodic payments provided in exchange for a lump sum payment. It is…

Q: You want to set aside money in order to present your son with a 25,000 trip upon his graduation from…

A: Present value is the current worth of the future payment. ------------------------------ Given:…

Q: 30. Assume that your parents wanted to have $150,000 saved for college by your 18th birthday and…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: You want to create a college fund for a child who is now 4 years old. The fund should grow to…

A: Step 1 Present Value A future sum of money or stream of cash flows' present value, or PV, is their…

Q: FUTURE VALUES Su Mei’s parents want to put enough money aside for her education by the time she goes…

A: Future values refer to those values that are calculated by using the present cash flows. An investor…

Q: You have just celebrated your birthday. Your uncle, has set up a trust fund for you, which will pay…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: You want to fund an endowment that will spit off $500,000 next year, and want that to grow at 2% a…

A: Cash Flow = cf = $500,000Growth Rate = g = 2%Rate of Return = r = 7%

Q: A person wants to have $3,000 available to spend for an overseas trip four years from now. If such…

A: Time value of money concept is one of the useful concept used in finance. It says that a dollar…

Q: 5. Suppose you want to invest for the college expenses of your children, which you estimate to be…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Following the birth of a child, a parent wants to make an initial investment Po that will grow to…

A: Future Value = Present Value x enr where n- Number of years r- Compounding Rate

Q: Martin and Marcy McCormack have just become proud parents of septuplets. They have savings of $5000.…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: You want to create a college fund for a child who is now 4 years old. The fund should grow to…

A: The lumpsum amount to be deposited is the present value of the future funds needed. This is the…

Q: please explain your answer....

A: The objective of this question is to find out how much John needs to invest now in order to have…

Q: college fund. It the total cost of education will be $325,000 and you want to have this amount when…

A: Information Provided: Present value = $55,000 Future value = $325,000 Term = 16 years Payment = $0

Q: You would like to establish a trust fund that would provide annual scholarships of $100,000 today…

A: Present value is the equivalent value of money today based on the time value of money and interest…

Q: a. If your investment rate over the next 25 years is 12%, which payoff will you choose? b. If your…

A: To compare the options, we need to determine the PV of the annuity stream using the formula below:In…

Q: You are the beneficiary of a trust fund that will start paying you cash flows in five years. The…

A: Present value is the current value of money that will be received in the future in the form of one…

Q: This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving…

A: a) Working note:

Q: You would like to give your daughter $75,000 towards her college education 16 years from now. How…

A: The amount to be set aside today is calculated as the present value using following equation Present…

Q: er and draw the cash flow diagram A man invests P 20,000 now for college education of his 2 year…

A: Future value of investment includes the amount that was invested earlier and also the amount of…

Q: You want to create a college fund for a child who is now 3 years old. The fund should grow to…

A: given data  future value = 60,000 time period = 15 years interest rate = 6% discounting to find…

Q: How much must she invest today to achieve this goal?

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: Assume that your parents wanted to have $130,000 saved for college by your 18th birthday and they…

A: Given, The amount required is $130,000 Rate is 7.5%

Q: Present Value of a Single Amount What is the amount you should invest today to have $86,250 in 15…

A: The present worth denotes the current worth of the future stream of expected cash flows.

Q: Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine…

A: Annuity is that under which investor will invested / deposit equal amount for specified period at…

Q: Your daughter is born today and you want her to have $1.5 million dollars by the time she is 35…

A: Future value of annuity is computed as follows:-FV= A*whereFV= future valueA= periodic depositsr=…

Q: A couple just had a baby. How much should they invest now at 5.4% compounded daily in order to have…

A: Compound Interest The interest that can be earned above interest is known as compound interest. The…

Q: The price of your e-Book reader in the U.S. is $100, so for how much would you sell it in Serbia?

A: We can determine the price of e-book in Serbia using the formula below:

Q: how much will she have to set aside today so that she will have sufficient funds available?

A: Time value of money: Time value of money refers to the concept that the value of money available at…