At your child's birth, you begin contributing monthly to a college fund. The fund pays an...
At your child's birth, you begin contributing monthly to a college fund. The fund pays an APR of 4.5% compounded monthly. You figure your child will need $30,000 at age 18 to begin college. What monthly deposit is required? (Round your answer to the nearest cent.)
Homework Answers
Monthly rate = 4.5% / 12 = 0.375%
Number of periods = 18 * 12 = 216
Future value = Annuity * [(1 + r)n - 1] / r
30,000 = Annuity * [(1 + 0.00375)216 - 1] / 0.00375
30,000 = Annuity * [2.244505 - 1] / 0.00375
30,000 = Annuity * 331.868018
Annuity = $90.40
Monthly deposit will be $90.40
Add Answer to:
At your child's birth, you begin contributing monthly to a
college fund. The fund pays an...
Proud parents wish to establish a college savings fund for their newly born child. Monthly deposits...
Proud parents wish to establish a college savings fund for their newly born child. Monthly deposits will be made into an investment account that provides an annual rate of return of 4.5% compounded monthly. Four withdrawals from the savings fund will be made to help pay for college expenses. The estimated need is $28,000 when the child turns 18 years old, $30,000 at 19 years, $34,000 at 20 years, and $38,000 at age 21. The last monthly payment to the...
You begin to save for your newborn child's college education by depositing $200 per month in...
You begin to save for your newborn child's college education by depositing $200 per month in an account paying 4% interest per year. You increase the amount you deposit each month by 5% each year. With continuous investment and compounding ... incipal will have been investe (nearest $100) B. What would be the average monthly payment over those 18 years? (nearest $1) C. How much will have accumulated in the account by the time your child enters college 18 years...
You are saving for your child's college tuition. Starting from the birth, you deposit $500 into...
You are saving for your child's college tuition. Starting from the birth, you deposit $500 into an account at the beginning of each month. The account generates 0.5% per month. By the time your child is 18 years old, how much money would you have in the account (assuming there are 18*12=216 payments, i.e there is no payment on the day your child turns 18)?
Suppose you want your daughter's college fund to contain $100,000 after twelve years. If you can...
Suppose you want your daughter's college fund to contain $100,000 after twelve years. If you can get a fixed APR of 6.7% compounded monthly, how many dollars should you deposit at the end of each month? Round answer to the nearest dollar.
Suppose you want to save in order to purchase a new boat. Take the APR to be 6.0%.
Suppose you want to save in order to purchase a new boat. Take the APR to be 6.0%. If you deposit $250 each month, how much will you have toward the purchase of a boat after three years? (Round your answer to the nearest cent.) You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4300 per month. You have access to an account that pays an APR of 4.8%...
You begin working at age 25, and your employer deposits $350 each month into a retirement...
You begin working at age 25, and your employer deposits $350 each month into a retirement account that pays an APR of 6% compounded monthly. Complete the following table to show the size of your nest egg in terms of the age at which you retire. Include retirement ages every year from 60 to 70 years old. (round your answers to the nearest cent.)
A couple wishes to establish a college fund for their five year old child. The college...
A couple wishes to establish a college fund for their five year old child. The college fund will earn 8% interest (profit) compounded annually. Assuming the child enter college at age 18, the couple estimate that an amount of SAR30,000 per year, in term of today’s riyal, will be required to support the child’s college expenses for four years. College expenses are estimated to increase at an annual rate of 6%. Determine the equal annual deposit the couple must make...
7. You plan to establish a college education fund for your child. The current cost for...
7. You plan to establish a college education fund for your child. The current cost for college is $12,000 per year and you expect this cost to increase by $600 per year. You plan to deposit money into an account earning 10% yearly nominal interest, compounded monthly, at the end of each year for the next 17 years. You will withdraw the amount required for college in the end of years 18 to 21 to pay for college for years...
A young couple wants to have a college fund that will pay $30,000 at the end...
A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 7%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) (b) Suppose 8 years after beginning the annuity payments, they receive...
cation fund for your child. The current cost for college 7 You plan to establish a...
cation fund for your child. The current cost for college 7 You plan to establish a college education fund for your child. The 000 per vear and you expect this cost to increase by $600 per year. You plan to deposit money into an account earning 10% yearly nominal interest, compounde monthly, at the end of each year for the next 17 years. You will withdraw the ar required for college in the end of years 18 to 21 to...
You begin to save for your newborn child's college education by depositing $200 per month in an account paying 4% interest per year. You increase the amount you deposit each month by 5% each year. With continuous investment and compounding ... incipal will have been investe (nearest $100) B. What would be the average monthly payment over those 18 years? (nearest $1) C. How much will have accumulated in the account by the time your child enters college 18 years...
7. You plan to establish a college education fund for your child. The current cost for college is $12,000 per year and you expect this cost to increase by $600 per year. You plan to deposit money into an account earning 10% yearly nominal interest, compounded monthly, at the end of each year for the next 17 years. You will withdraw the amount required for college in the end of years 18 to 21 to pay for college for years...
A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 7%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) (b) Suppose 8 years after beginning the annuity payments, they receive...
cation fund for your child. The current cost for college 7 You plan to establish a college education fund for your child. The 000 per vear and you expect this cost to increase by $600 per year. You plan to deposit money into an account earning 10% yearly nominal interest, compounde monthly, at the end of each year for the next 17 years. You will withdraw the ar required for college in the end of years 18 to 21 to...
Most questions answered within 3 hours.
-
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 7 minutes ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 1 hour ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 2 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 2 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 2 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 2 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 2 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 2 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 2 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 2 hours ago -
How do ECM Solutions assist in embedding a culture of continuous
improvement in an organization? (Project...
asked 2 hours ago -
Directions
These directions introduce the idea of Essential Questions.
Since this may be a new concept...
asked 2 hours ago