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?

Q: You want to endow a scholarship that will pay $ 8 comma 000$8,000 per year​ forever, starting one…

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

Q: you are planning for a very early retirement. you would like to retire at age 40 and have enough…

A: You need $235,000 each year for 40 years. Present value for $235,000 for 40 years at 10% can be…

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: The parents of a 3 year old child decide they need to start saving for their child's college fund.…

A: Here, Future value (FV) = 22,000 Time period = 15 years  Interest rate = 3.5% To Find: Present value…

Q: Assume the total cost of a college education will be $300,000 when your child enters college in 18…

A: Future Value = Present Value * ( 1 + Interest rate)time period

Q: You want to endow a scholarship that will pay $13,000 per year forever, starting one year from now.…

A: We need to donate the amount equal to the present value of future scholarship payments, since the…

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: Q)suppose your child is 10 years old now and you decided to start an education fund your child next…

A: Here we will use the concept of time value of money. Essentially this is the case of a growing…

Q: You expect to inherit 75,000 dollars 8 years from now. If r = 2 percent, find the PV.   Group of…

A: Hi studentSince there are multiple questions, we will answer only first question.Time value of money…

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: Jasica Parker would like to have $87,000 to buy a new car in 7 years. To accumulate $87,000 in 7…

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

Q: 14. Your grandfather left you $40,000 when he died. You can invest the money to earn 9% per year. •…

A: An annuity is a financial product that provides a series of regular payments to an individual over a…

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: 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: 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: 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: 7. Invested in an account earning 14% per year.  If you invest $500 today, how many years will it…

A: Note: Since you have posted multiple questions, we will solve the first question for you. To get the…

Q: A person needs to have $15,000 at the end of 6 years and $20,000 at the end year 7 to fulfill his…

A: Principal value (PV) = $12,000 Maturity value (FV) = $15,000 + $20,000 = $35,000 Present value…

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: 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: 5. Suppose you want to invest for the college expenses of your children, which you estimate to be…

A: Present Value is the current price of future value which will be received in near future at some…

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: 2) You mom is more conservative, and she wants you to invest in the C.D. paying 4% per year for…

A: To make the MMSG fund investment more profitable than the CD investment, we need:$1,000 × (1 + 0.04…

Q: You are planning for a very early retirement. You would like to retire at age 40 and have enough…

A: Particulars Values Annual withdrawals after retirement  $ 2,05,000 Total number of years of…

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

A:

Q: then is this an acceptable investment? Show why.

A: Net Present Value (NPV) is a method which is used to calculate the profitability of an proposed…

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: You decided to fund a charity for ten years. The first payment will be made one year from today (at…

A: The concept of money's time worth indicates that any sum of money is worth more currently than what…

Q: You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If…

A: A series of payments made at an equal interval of time for an infinite period is called perpetuity.…

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: 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: Assume that your parents wanted to have $150,000 saved for university 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 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: 2. A scholarship endowment fund is to be set up today so that a monthly stipend of P15,000 can be…

A: Present Value of annuity refers to the current value of a series of equal cash flows or payments at…

Q: Parents wish to have $140,000 available for a child's education. If the child is now 10 years old,…

A: The present value shows the current value of the future sum of money at a given rate.We are given…

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

A: Annuity is that under which investor will invested / deposit equal amount for specified period at…

Q: Sheldon Cooper and Amy Fowler are married and live in Pasadena, California. They have as a new…

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