9:53COMMAS OR $.5.4Unanswered 3 attempts leftYou want to create a college fund for a childwho is now 3 years old. The fund shouldgrow to $60,000 in 15 years. If aninvestment available to you will yield 6percent per year, how much must youinvest in a lump sum now to realize the$60,000 when needed?Round to the nearest cent. DO NOTINCLUDE COMMAS OR $.Type your responseSubmit5.5Unanswered 3 attempts leftSubmitYou plan to retire in 40 years. To providefor your retirement, you initiate a savingsprogram of $4,000 per year, yielding 7percent. What will be the value of theretirement fund after 40 years?1/5 answeredX

PRESENT VALUE Present Value is the Current Value of a Future amount of money or Series of Cash…

Answered: You want to create a college fund for a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The parents of a 3-year old child decide they need to start saving for their child's college fund. They want to have $22,000 in the fund in 15 years. The fund has an APR of 3.4%. What monthly deposit is required? Round your answer to the nearest cent.
You want to make 5 equal deposits into an account paying 7.5 percent so that your child can take out $14,000 per year for college expenses. Your deposits will be at t=1, t=2, t=3, t-4, and t-5. Your child will make withdrawals of $14,000 at t-7, t-8, t-9, and t-10. Assume no inflation of college expenses. How much will you need to deposit each of the next 5 years? t = 0 7 W W 1 8 2 9 DOD W W 3 10 D $14,000 $14,000 $14,000 $14,000 A. $7,483 B. $8,424 C. $7,510 D. $8,073 E. $7,910 4 D 5 D
Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10% annual interest rate, compounded quarterly, in order to have $30,000 in the fund at the end of 10 years? Question content area bottom Part 1 They should deposit $enter your response here. (Round up to the nearest cent.)
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to withdraw $240,000 per year for the next 40 years (based on family history, you think you will live to age 80). You plan to save by making 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that you expect will earn 10% per year. You will leave the money in this fund until it is completely depleted when you are 80 years old. (Click the icon to view Present Value of $1 table.) ( Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. How much money must you accumulate by retirement to make your plan work? (Hint. Find the present value of the $240,000 withdrawals.) (Round your final answer to the nearest whole dollar.) To make the plan work, you must…
You wish to establish a permanent scholarship at Bond University providing a worthy student with $1000 annually. If invested monies generate an 8% return, how much is needed in the scholarship fund?
you that will pay you $100,000 when you turn 25. If the relevant discount rate is 11 percent, how much is this fund worth today? (See Problem 3.) Calculating Rates of Return You've been offered an investment that will double your money in 12 years. What rate of return are you being offered? Check your answer using the Rule of 72. (See Problem 4.) 4.3 Calculatin
The Jeffersons have asked you what would be needed to fund the children’s future college costs. Assume each child will begin college at age 18 and graduate in four years. Assume current costs are $24,000 per year and are expected to increase by 5% per year and investments earn 7%. A. Assuming no existing assets are dedicated to college, what is the annual savings amount required to fund the children’s education? The Jeffersons’ goal is to have an amount at the beginning of the freshman year for each child that is sufficient to fund a serial payment covering the $24,000 of current costs of college adjusted for inflation for each of the four years of college. Please include your calculator keystroke inputs [PV, I/YR, N, FV, and PMT (if needed)] for each step of this calculation. Also include whether any PMTs are in the end mode or the begin mode. B. What would you say to the Jeffersons about their education funding situation? Write a script of a single paragraph as if you…
How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.32% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.) Enter your answer in the answer box. Type here to search 0 哥同

Ethan is creating a college investment fund for his daughter. He will put in $21,000 per year for the next 17 years and expects to earn a 12% annual rate of return. How much money will his daughter have when she starts college? Use Appendix C to calculate the answer. Multiple Choice $1,014, 538 $1,015,551 $1,027,291 $1,026,564
hi! help me on my assignment. provide a step-by-step explanation for this problem. thanks!
You want to create a college fund for a child who is now 3 years old. The fund should grow to $60,000 in 15 years. If an investment available to you will yield 6 percent per year, how much must you invest in a lump sum now to realize the $60,000 when needed? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $.
Let us develop a savings plan for your retirement. We will assume that you will be fin-ished with your schooling by age 25, and work for 40 years to retire at age 65. Let us (verygenerously and optimistically) imagine that you will receive a substantial graduation giftof $10,000, and will open an investment account with it that (again, quiteoptimistically) can be expected to reliably pay 8% interest, compounded continuously. Inaddition, you will plan to save a portion of your paycheck each week, for a total of D dollarsper year, every year. Determine D, i.e how much you need to add to your account from yourearnings every year, in order to retire with a princely sum of $2,000,000 in your retirementaccount.

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