Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 7%. How much should you deposit monthly to accumulate $82,000 in 12 years?

Q: sume that your parents wanted to have $160,000 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: need

A: AS the deposits are made at the end of the year. This is an ordinary annuity problem. Formula to…

Q: Mr. Wise is creating a college investment fund for his daughter. He will put in P850 per year for…

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

Q: Your brother has decided to ask you for advice about saving up for his teenager's college fund. He…

A: Answer: Calculation of the amount that your brother need to deposit today: The amount that your…

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: 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: If she starts now, how much does Sally need to save each month for the next 9 years to accumulate…

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Q: . How much should you deposit monthly to accumulate $85,000 in 15 years?

A: Future Value of Annuity: It represents the future worth of current annuity payments made…

Q: Assume the total cost of a college education will be $525,000 when your infant child enters college…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

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

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

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: 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 = ?

Q: 4. Suppose you make an annual contribution of BD300 each year to a college education fund for a…

A: An annuity: An annuity is a fixed, constant contribution that is made at fixed intervals over a…

Q: The parents of a newborn decide to make deposits into an educational savings account on each of…

A: It is a case where the parents of a daughter want to calculate the present value of an alternative…

Q: uppose someone wants to accumulate ​$55,000 for a college fund over the next 15 years. Determine…

A: We have; Amount to accumulate as $55000 Time period as 15 years Amount deposited per month is $60…

Q: plan you to nancial planning service off a college savings program. make six annual payments of…

A: IRR is rate of return at present value of cash outflow is equal to present value of cash inflows and…

Q: Matt plans to start his own business once he graduates from college. He plans to save $3,000 every…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: A 529 Plan is a college-savings plan that allows relatives to invest money to pay for a child's…

A: F = P*(1+r/n)n*t P = F/(1+r/n)n*t Where F = future value ($40,000) P = Amount to deposit today r =…

Q: Parvati wants to donate enough money to Camosun College to fund an ongoing annual bursary of $1,000…

A: We need to find present value of future donation by using this equation Present value =FV(1+i)n…

Q: Your parents would like to establish a trust fund that would pay annual payments to you and your…

A: In this question we require to calculate the present value of perpetuity as we will receive $500000…

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

A: The time value of money is beneficial to shareholders as it emphasizes the importance of receiving…

Q: You intend to create a college fund for your baby. If you can get an APR of 3.0% and want the fund…

A:

Q: Explain to a friend or relative how you would use the TVM concept to achieve their desired…

A: Time value of money: It represents the concept that the current value of funds is worth more than…

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

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

Q: If your daughter is 5 and she plans to go to college or university in Canada when she is 18 years…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: Suppose an individual wants to have $200,000 available for her child's education. Find the amount…

A: The concept of time value of money will be used here. As per the concept of time value of money any…

Q: The Chan family would like to establish a bursary at Camosun College. The bursary pay $2,000 to a…

A: This payment is a perpetuity, meaning that this payment will occurs indefinitely. In a perpetuity,…

Q: SOLVE the following: i. Suppose that your five-year old daughter has just announced her desire to…

A: Money’s value declines with the time. Compounding and discounting are the two ways which considers…

Q: a) Suppose they will use a spreadsheet to compute their monthly deposit. Choose the corre function…

A: First I'm going to show you the formula to determine the monthly deposit manually and then show you…

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: Present Value. You want to begin a college fund for your new born child; you hope to accumulate…

A:

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: Assume the total cost of a college education will be $365.000 when your child enters college in 18…

A: given, future value = $356,000 present value = $59,000 n = 18 years

Q: You decide to set up a college fund for your 10-year-old child and plan to make annual deposits into…

A: When a payment is made repeatedly then it is referred to as Annuity. Annuity is of two types: 1.…

Q: The Smiths are planning ahead for their daughter’s education. She’s 8 now and will start college in…

A: Future value is the estimated value of a current asset that is likely to be received at a future…

Q: start saving in one year from now a fixed amount for 20 total deposits. Wha is the amount of that…

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

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

A: The FV of an investment refers to the combined value of the investment's cash flows at a future date…

Q: Assuming an annual return of 12 percent with a Coverdell Education Savings​ Account, how much would…

A: Future Value = Annuity * FV Factor @ (12%,18 year) Future Value = 1600*55.7497 Future Value =…

Q: show working using both a financial calculator and spreadsheet. after, show answer rounded off to…

A: Dear student, this question is asking about the annual contribution, here to calculate the annual…

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…