Joe Jr. will need $18,000 to enter college on his 18th birthday. How much money must...
Joe Jr. will need $18,000 to enter college on his 18th birthday. How much money must his father deposit on the date of his birth in an account paying 15% annual rate of interest in order for Joe to have the $18,000 needed for college? Semiannual compounding
Homework Answers
We use the formula:
A=P(1+r/2)^2n
where
A=future value
P=present value
r=rate of interest
n=time period.
18000=P*(1+0.15/2)^(2*18)
P=18000/*(1+0.15/2)^(2*18)
=$18000*0.074010832
which is equal to
=$1332.19(Approx).
Add Answer to:
Joe Jr. will need $18,000 to enter college on his 18th birthday.
How much money must...
On the day his baby is born, a father decides to establish a savings account for...
On the day his baby is born, a father decides to establish a savings account for the child’s college education. Any money that is put into the account will earn an interest rate of 9% compounded annually. The father will make a series of annual deposits in equal amounts on each of his child´s birthdays from the 1st through the 18th so that the child can make four annual withdrawals from the account in the amount of $35,000 on each...
Joe and Sarah Fabozzi are saving for the college education of their 1 year old daughter,...
Joe and Sarah Fabozzi are saving for the college education of their 1 year old daughter, Beth. The Fabozzi's estimate that college expenses will run $35,000 pear year when their daughter reaches college in 17 years. In other words, the first withdrawal will be made on Beth's 18th Birthday and the last payment will be made on Beth's 17th Birthday. The expected interest rate while saving and in college is 6%. Assume today is Beth's first birthday and the first...
4-6 A man buys a ear for $18,000 with no money down. He pays for the...
4-6 A man buys a ear for $18,000 with no money down. He pays for the car in 30 equal monthly pay- ments with interest at 12% per annum, compounded monthly. What is his monthly loan payment? 4-1 Rose recently graduated in engineering. Her employer will give her a raise of $6500 per year if she passes the FE exam (Fundamentals of Engineering). (a) Over a career of 45 years, what is the present worth of the raise ifthe interest...
4-30 A man wants to help provide a college education for A his young daughter. He...
4-30 A man wants to help provide a college education for A his young daughter. He can afford to invest $600/yr for the next 4 years, beginning on the girl's 4th birthday. He wishes to give his daughter $4000 on her 18th, 1gth, 20th, and 21st birthdays, for a total of $16,000. Assuming 5% interest, what uniform annual investment will he have to make on the girl's 8th through 17th birthdays? Tameshia deposits $5500 in her retirement account every year....
if you invested $4200 into an account that pays 14.0% annual interest, how much would be...
if you invested $4200 into an account that pays 14.0% annual interest, how much would be in the account after 20 years? 1, How much must be invested into an account paying 6.5% annual interest to have $15,000 in the account after 4 years? 2, 3. What interest rate is required for a principal to triple in 15 years? 4, $10,000 is invested into an account paying 6% annual interest. How long will it take the $10,000 5. If $1000...
Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit...
Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit at the end of each quarter in an account paying 5.9% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? SI (Round to the nearest cent as needed.)
please answer all of the following questions 18. On the day that his first child was...
please answer all of the following questions
18. On the day that his first child was bom, Ezio Auditore de Firenze deposited $6,200 into an investment account. The only purpose for the account was to pay for his son's first year of college tuition. Assume! that his son, Flavia, started college on his 18th birthday and his first year tuition payment had to be made that day. The amount needed on that day was $45,000. If that was indeed the...
College Problem ther and mother are planning a savings program to put their daughter through college....
College Problem ther and mother are planning a savings program to put their daughter through college. Their mer is now 4 years old. She plans to enroll at the university when she is 18 and it should take her 4 years to complete her education. Currently, the cost per year (for tuition, etc.) is $12,000, but a 370 ation rate in these costs is forecasted. The cost for each year of college will be withdrawn when she turns 18, 19,...
Your best friend Dave just celebrated his 24th birthday and wants to start saving for his...
Your best friend Dave just celebrated his 24th birthday and wants to start saving for his anticipated retirement. Dave plans to retire in 36 years and believes that he will have 25 good years of retirement and believes that if he can withdraw $125,000 at the end of each year, he can enjoy his retirement. Assume that a reasonable rate of interest for Dave for all scenarios presented below is 6.5% per year. This is an annual rate, review each...
How much must be deposited today into the following account in order to have a $105,000...
How much must be deposited today into the following account in order to have a $105,000 college fund in 13 years? Assume no additional deposits are made. An account with annual compounding and an APR of 5.7% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)
4-6 A man buys a ear for $18,000 with no money down. He pays for the car in 30 equal monthly pay- ments with interest at 12% per annum, compounded monthly. What is his monthly loan payment? 4-1 Rose recently graduated in engineering. Her employer will give her a raise of $6500 per year if she passes the FE exam (Fundamentals of Engineering). (a) Over a career of 45 years, what is the present worth of the raise ifthe interest...
4-30 A man wants to help provide a college education for A his young daughter. He can afford to invest $600/yr for the next 4 years, beginning on the girl's 4th birthday. He wishes to give his daughter $4000 on her 18th, 1gth, 20th, and 21st birthdays, for a total of $16,000. Assuming 5% interest, what uniform annual investment will he have to make on the girl's 8th through 17th birthdays? Tameshia deposits $5500 in her retirement account every year....
if you invested $4200 into an account that pays 14.0% annual interest, how much would be in the account after 20 years? 1, How much must be invested into an account paying 6.5% annual interest to have $15,000 in the account after 4 years? 2, 3. What interest rate is required for a principal to triple in 15 years? 4, $10,000 is invested into an account paying 6% annual interest. How long will it take the $10,000 5. If $1000...
Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit at the end of each quarter in an account paying 5.9% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? SI (Round to the nearest cent as needed.)
please answer all of the following questions
18. On the day that his first child was bom, Ezio Auditore de Firenze deposited $6,200 into an investment account. The only purpose for the account was to pay for his son's first year of college tuition. Assume! that his son, Flavia, started college on his 18th birthday and his first year tuition payment had to be made that day. The amount needed on that day was $45,000. If that was indeed the...
College Problem ther and mother are planning a savings program to put their daughter through college. Their mer is now 4 years old. She plans to enroll at the university when she is 18 and it should take her 4 years to complete her education. Currently, the cost per year (for tuition, etc.) is $12,000, but a 370 ation rate in these costs is forecasted. The cost for each year of college will be withdrawn when she turns 18, 19,...
How much must be deposited today into the following account in order to have a $105,000 college fund in 13 years? Assume no additional deposits are made. An account with annual compounding and an APR of 5.7% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)
Most questions answered within 3 hours.
-
Computer Programming II CS141(Java)
Mention the appropriate relationship between following
classes:
HOD–StaffMember
Car–Ferrari
Student-Address
BankAccount–FixedAccount
House-Building...
asked 2 hours ago -
Assume one of your finals has 50 questions on it, and
lucky for you, it's all...
asked 3 hours ago -
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 4 hours ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 5 hours ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 5 hours ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 5 hours ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 6 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 6 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 9 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 10 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 10 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 10 hours ago