When Derrick turned 15, his grandparents put $10,000 into an account that yielded 1.4% interest, compounded quarterly. When Derrick turns 18, his grandparents will give him the money to use toward his college education. How much does Derrick receive from his grandparents on his 18th birthday?

Q: paying 8 per cent interest. Will there be enough money in the account for Joie to pay for her…

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

Q: Armin's wonderful parents established a college savings plan for him when he was born. They…

A: Compound = Monthly = 12Payment = p = $57Interest Rate = r = 8.2 / 12 %Time = t = 18 * 12 = 216

Q: Steve is a newborn. His parents are planning to contribute $6,000 a year (or possibly less) towards…

A: Contribution is $6,000 or less Growth Rate is 5% Company's Contribution for first 6 paternal…

Q: A father is planning a savings program to put his daughter through college. His daughter is now 13…

A: Annuity payment Annuity payments are money invested or deposited on a regular interval such as…

Q: how much will John have in his retirement account at age 60?

A: Present age is 25 Rate of return = 8% Retirement age = 60

Q: Julian used $90,000 of his savings to purchase a single premium annuity, which pays him $600 per…

A: A single premium annuity is a type of annuity that is purchased with a lump-sum payment. The…

Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Alice needs P 4,000 per year for four years to go to college. Her father invested P 5,000 in 7%…

A: Future value of an amount is calculated as: = Amount * (1+rate)^number of periods

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: $28,437 $26,908 $29,216 $25,099 $27,411

A: Money growth is due to compounding of interest rates and significant in long term.

Q: On Chris’ 4th birthday, his great aunt gives him $120,000. His parents place the money in an…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: ecardo and Bisa have a new grandson. How much money should they invest now so that he will have…

A: To calculate the investment amount we will use the below formula   Investment amount =…

Q: Nadine is retiring at age 62 and expects to live to age 85. On the day she retires, she has…

A: The present value concept is widely used in finance and economics, including in the areas of…

Q: sabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: Here we will use formula of future value of money to calculate amount after 10 years :   FV = PV × 1…

Q: DeAndre starts saving for retirement when he starts his first job at age 24. He deposits $2400 into…

A: Here, Particulars Values Quarterly deposits (PMT)  $2,400.00 Annual interest rate 3.20%…

Q: Leon and Heidi decided to invest $3,250 annually for only the first nine years of their marriage.…

A: The future value is considered as the sum of its present value P, after growing at compounded…

Q: Juan received an inheritance from his grandfather. Worried of spending the money unproperly, he…

A: Total amount = $3,000,000 Time = 2 years No of weeks = 52 *2                      = 104 Rate = 2%…

Q: what will be the size of each installment?

A: Information Provided: College fund interest rate = 4% p.a. Tax free account = 3.5% compounded…

Q: Jason received an amount of 1000.00 from his grandpa as a birthday gift. He decides to invest the…

A: Principal Amount, P = 1,000 Interest rate, r = 10% = 0.10 Time, t = 5 years Future Value, FV = P…

Q: much

A: Formula to calculate future value is: FV = PV(1+r)^n Where FV is the future value, r is the rate of…

Q: jesse recieved $5,000 from his grandmother when he turned 18. if he invests it at 5.5%(12), how much…

A: The question gives the following information:

Q: size of each installment

A: This question is based on the concept of time value of money. It is used to calculate the value of…

Q: Today is Amy's 24th birthday. Starting today, Any plans to begin saving for her retirement, which…

A: Future value refers to the anticipated value of an investment or asset at a specific point in the…

Q: Twins Natalie and Kaitlyn are both 27. They both live in Warren, OH. Beginning at age 27, Natalie…

A: Given, Twins age is 27 years. Natalie  from the age of 27 till the age of 37 invested $2000 per year…

Q: Van, age 40, is starting his savings plan this year by putting away $2,200.00 at the end of every…

A: Future value It is a value that a person will receive in the future on an investment that is done…

Q: J'Mal wishes to retire at age 65. At the age of 21, he begins depositing $35 per month into an…

A: A deposit of $35 is made each month for 44 years (65 years – 21 years) at a rate of 8.5%…

Q: When Xian was born, his father Brian deposited a sum of money for the college education of Xian.…

A: Present Value = Future Value x 11+in

Q: Cyrus Petit is planning for the day when his child Laura, will go to college. Laura has just turned…

A: Given:

Q: how much will be the savings account when Tony's son becomes 16 years old?

A: Future value of an annuity: It is the future worth of the annuity cash flows over a given period. It…

Q: Santo plans to invest his money for 10 years for his son's university education. His son Brian is 10…

A: We need to use the concept of time value of money (TVM) to solve the question. According to TVM, the…

Q: Sam's grandparents have offered to help pay for some of her university expenses. Sam will receive…

A: Annuity due refers to that annuity for which the payments or the cash flows occur at the start of…

Q: If he does this, how much will he owe in taxes and penalties on this distribution if he is in the…

A: Tax refers to the amount charged by the government on individuals, partnership firms, HUF’s or any…

Q: ur son just turned 4 years old. You anticipate he will start University when he turns 18. You would…

A: Financial planning is required for the future requirements and that should be done based on the time…

Q: Marshall and Tiana have a new grandson. How much money should they invest now so that he will have…

A: Information Provided: Future value = $63,000 Interest rate = 4.65% compounded annually Period of…

Q: Yumi's grandparents presented her with a gift of $21,000 when she was 8 years old to be used for her…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: When Steven was 5 years old (on his birthday), his grandmother decided to set up a trust account to…

A: The amount to be deposited today is the present value of amount to be received on 18th birthday.…

Q: Since he was 24 years old, Ben has been depositing $225 at the end of each month into a tax-free…

A: To solve the problem, we can use the formula for the future value of an annuity, which is: FV = PMT…

Q: When Joe graduated from college at age 22, his grandparents established a trust fund and endowed it…

A: Future value is the value of annuity at the end of a defined period. This can be calculated by…

Q: one ecided that you will give Bob $15,000 per yE year for each of his last two years of colleE f…

A: First, We need to compute the total amount required when BOB leaves for school. This can be computed…

Q: Matt recently deposited $41,250 in a savings account paying a guaranteed interest rate of 2.6…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Isabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…

A: The future value function can be used for determining the future value of a present sum, or the…

Q: Frank is planning for the day when his child, Laura, will go to college. Laurahas just turned eight…

A: The question is based on the calculation concept of future value and present value of fund in form…