Your daughter is currently 9 years old. You anticipate that she will be going to college in 9 years. You would like to have $107,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 12% per year, how much money do you need to put into the account today to ensure that you will have $107,000 in 9 years? ... Your deposit today should be $ (Round to the nearest dollar.)

Your daughter is currently 9 years old. You anticipate that she will be going to college in 9 years. You would like to have $107,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 12% per year, how much money do you need to put into the account today to ensure that you will have $107,000 in 9 years? ... Your deposit today should be $ (Round to the nearest dollar.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

How much will you have in your bank account after 4 years ifyou deposit $5,000 of your high-school graduation gifts into an account that pays a fixed interest rate of 5% per year?
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
You are saving money for your daughter's private school tuition of $110,000, which is needed in 9 years. To this end, you decide to deposit an amount into a savings account with 4% nominal rate compounded monthly. Assuming you make no other deposits, how much would your initial deposit need to be? a. $67,073.23 b. $70,313.49 c. $73,555.96 d. $76,790.35
You plan on making deposits of $1,000 into a savings account at the end of every year in college. If you graduate in 5 years and the account earns an annual rate of 8%, how much will you have at graduation? PLEASE BREAK IT DOWN
Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $90,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.2% per year, how much money do they need to put into the account today to ensure that they will have $90,000 in 6 years?
Karen wants to have $22,011 in her investment account in 6 years. If her bank offers an annual compound interest rate of 2% with monthly compounding, how much should she deposit today?
John would like to accumulate $100,000 by the time his son starts college in ten years. What amount would he need to deposit now in a deposit account earning 5%, compounded yearly, to accumulate his savings goal? What if interest is compounded semiannually?
Your mother has asked you to help her with an investment. She has $6,000 to invest today for 3 years. You've identified a CD at a bank that pays a nominal rate of interest of 5.08%, with interest paid quarterly. What will be the value of this investment 3 years from now?
Your daughter is 8 years old today. You are worried about paying for her college tuition, which you estimate will be $20,000 per year (after scholarships). You decide to start a college savings fund by depositing an equal amount in the bank at the end of each of the next 10 years. At the end of years 11, 12, 13 and 14, you want to withdraw $20,000 in order to pay for the tuition. An interest rate of 8% APR compounded annually is assumed. How much do you have to deposit at the end of each of the next 10 years in order to pay for the tuition costs?
Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $5,000 payments. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent.
Abby Ellen wants to attend Ithaca College. She will need $75,000 6 years from today. Assume Abby's bank pays 6% interest compounded semi-annually. What must Abby deposit today to have $75,000 in 6 years?
How much more money should be invested now in order to receive $1,250.00 at the beginning of each month for 10 months instead of $260.00 at the beginning of each month for 30 months? Assume an interest rate of 5.00% compounded annually. How much should Robert's dad invest in a savings account today, to be able to pay for Robert's rent for the next five years, if the rent is $450, payable at the beginning of each month? The savings account earns 3.26% compounded monthly.

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