You need 40,000 pesos per year for 4 years to go to college. Your father invested 50,000 pesos at 7% for your education the day you were born. if you withdraw 40,000 pesos at the end of your 17th 18th 19th and 20th birthda, how much will be left in the account at the end of the 21st year?

Q: When you were born, your family started to deposit 1,000 USD each month in the bank. The bank offers…

A: Amount deposited each month in the bank = 1,000 USD  Annual deposited amount (PV) = 1,000 USD × 12…

Q: (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and…

A: In step 1, calculate the amount that is saved till year 17 .i.e the future value of the annuity of…

Q: You have been accepted at University. You will need $15,000 every six months (beginning six months…

A: Compound = Semiannually = 2Payment = p = $15,000Interest Rate = r = 6 / 2 = 3%Time = t = 3 * 2 = 6

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6…

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is…

Q: Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's…

A: We need to use compound interest formula below to calculate principal deposit today to get desired…

Q: You want to retire 32 years from today and buy a beach house in Costa Rica. Today, those houses sell…

A: Future value of money is the amount of deposit done and amount of compounded interest accumulated…

Q: Can you please help me work out this problem in detail?   Tony Ring wants to attend Northeast…

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

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

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

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: On january 1, 2010, you put 1000.00 in a savings account that pays 6(1)/(4)% interest, and you will…

A: The time value of money is a concept in finance that evaluates the worth of cash flows at any given…

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: Your elder child is one year old at present while he will begin he's college at 18th years. For…

A: The accumulated amount of regular payments made at a fixed rate is the future value of the annuity.…

Q: Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year…

A: An annuity is a method of fulfilling a financial goal for a specified period of time at a defined…

Q: Your grandmother will be gifting you $190 at the end of each month for four years while you attend…

A: In the Market, some factors are present such as inflation, market rates, and investment…

Q: Maria wants to attend Clarke University. She will need $90,000 eight years from today. Assume…

A: Amount required (FV) = $90,000 Semiannual interest rate (r) = 0.03 (i.e. 0.06 / 2) Semiannual period…

Q: Boatright wants to withdraw $2000 from an account at the end of year 1, $4000 at the end of year 2,…

A: Today value required in account is the present value of the future payments based on the time and…

Q: You finance your college education with a student loan. Every month, you borrow $1,000 to pay for…

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

Q: Your grandmother will be gifting you $130 at the end of each month for four years while you attend…

A: Value of the monthly amount of $130 is calculated as the present value of annuity using following…

Q: You need Php 40,000 per year for four years to go to college. Your father invested Php 50,000 in a…

A:

Q: Taurus needs P 4,000 per year for four years to go to college. His sugar mama invested P 5,000 in 7…

A: The worth of money changes with time, therefore the TVM considers the value of money according to…

Q: Grandma gave you 600 for your graduation. You deposit it into an account that earns 4% annually.…

A: Given:Principal amount (P)=600Rate of interest (r) =4% annually.It is assumed that the interest is…

Q: tion, you plan to work for Dynamo Corporation for 12 years and then start your own business. You…

A: In compounding of interest there is interest on interest including interest on deposit amount due to…

Q: In order to save for your child's college education, you want to save $300 every month for 15 years,…

A: Compound = Monthly = 12Payment = p = $300Time = t = 15 * 12 = 180Monthly Interest Rate = r = 0.4%

Q: A man wants to set up a 529 college savings account for his granddaughter. How much would he need to…

A: An annuity is a contract where a fixed amount is paid periodically. It is used to help investors…

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Here, we need to calculate the present value which needs to be deposited or kept aside by the couple…

Q: A father decides to invest k300 each month at 12% per year compounded monthly to pay for his 12 year…

A: Data given: pmt= k 300 r=12% (compounded monthly) n=17-12 =5 years

Q: What principal must be deposited by the parents when their child is born in order to have

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: A couple plans to save for their child's college education. What principal must be deposited by the…

A: Present Value  Present value is the present worth of any sum of a money to be received in the future…

Q: essica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had…

A: We need to use future value of ordinary  annuity  formula to calculate monthly payment PMT =…

Q: A student plans to deposit P 2,000 in the bank now and another P 5, 000 each year for the next two…

A: Future value of a present value is the value of that amount after taking into account the time value…