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

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

Q: ur client has asked you what would be needed to fund your 2 children’s future college costs. Assume…

A: Future planning is needed for the education of the children and you have to save for that.

Q: Current Attempt in Progress Your grandfather is retiring at the end of next year. He would like to…

A: Payment = p = $9600Interest Rate = r = 6.10%

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: 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: Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of…

A: Annuity is a series of cash flow in which the cash flow occurs at a regular interval of period.Here…

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: anscrip Suppose someone wants to accumulate $50,000 for a college fund over the next 15 years.…

A: Future value is the estimation of current value of future cash flows that are likely to be received…

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: QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: 10) IF YOU WANTED TO SAVE FOR YOUR EDUCATION FOR YOUR KIDS AND YOU WILL NEED $45,000 IN 5 YEARS.…

A: Future value refers to the value of an amount after a certain time period, after taking into account…

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: How much do you need to invest today to receive $7,500 in 8 years, if you can earn 3% on your…

A: INFORMATION: RATE 3% YEARS 8 PMT (MONTHLY DEPOSIT) 0 FUTURE VALUE $7,500

Q: Suppose you want to have S0.5 million saved by the time you reach age 30, and suppose you are 20…

A: Future value of the investment (FV) = $500000 Number of years of investment (n) = 10 Rate of…

Q: ou want to endow a scholarship now that will pay $7,000 per year forever, starting the first award…

A: Annual payment = $7,000Discount rate = 6%

Q: 1.1 Your parents set up fund for you 22 years ago that is now worth R47866,34. If the fund earned 8%…

A: According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be…

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A: Present value of future amount is computed byfollowing formula-PV =  A ÷ ( 1+r)nWhere,PV = Present…

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: 2. You invest $12,000 a year in to a retirement fund starting at age 25 and continue to do so until…

A: As you have asked a question with multiple parts, we will solve the first 3 parts as per Bartleby…

Q: Present value: Elizabeth Sweeney wants to accumulate $12,000 by the end of 12 years. If the annual…

A: PRESENT Value formula used (Annual compounding) : PV = FV/(1+r)^n FV= future value =12000 PV=…

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: year for 20 years in a f

A: Answer :Future value of an annuity due = Payment * [(1+Rate)^time - 1)/rate)*(1+rate) Future value…

Q: Problem 10. A local businessman has set up a school fund that will last forever that can earn 3.1%…

A:

Q: Warren buffet decides to endow an annual investment symposium at DePaul starting next year and…

A: Symposium Cost =$15000 Annual Investment = Let A Continue forever Interest Rate (i)=5%

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: Settings Your daughter just gave birth to a baby. You are going to invest $20,000 to help pay for…

A: The value under portfolio of stocks after 10 years will be $47,347.27 and value under portfolio of…

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: Assume that your parents wanted to have $180,000 saved for college by your 18th birthday and they…

A: Annuity refers to a contract between the insurance company and the person in exchange for a fixed…

Q: You want to establish an Endowment to provide scholarships for MU, Business students. You want to…

A: We need to calculate value of endowment by using this formula Amount need to invest =Payment for…

Q: Consider making an investment of $10,000 each year. If the first $10,000 investment is made at the…

A: Future value refers to an amount of a current asset at some future date effected by interest rates,…