Question

Question 25 (0.5 points) You have a child who will start college in 8 years, and you plan to set aside $1,000 a year for her
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Future value = fv = pmtx ((1+r)^n-1)/ $9,897.47 1,000*(((1.0648)-1)/0.06)

Add a comment
Know the answer?
Add Answer to:
Question 25 (0.5 points) You have a child who will start college in 8 years, and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • You have a child who will start college in 10 years, and you plan to set...

    You have a child who will start college in 10 years, and you plan to set aside $1,000 a year for her college education during that period. You estimate that you will earn an annual interest rate of 7% on your investment. What amount can you expect to have available for your child when they start college?

  • 1) You plan to deposit $200 each month into an IRA earning 0.25% interest monthly. How...

    1) You plan to deposit $200 each month into an IRA earning 0.25% interest monthly. How much will you have in your account in 10 years? 2) You just graduated from college and landed your first "real" job, which pays $68,000 a year. In 9 years how much will you need to earn to maintain the same purchasing power if inflation is 0.75% per year? 3) Calculate the future value of $13,000 earning 9% for 35 years. 4) You have...

  • Assume the total cost of a college education will be $325,000 when your child enters college...

    Assume the total cost of a college education will be $325,000 when your child enters college in 16 years. You presently have $40,000 to invest and do not plan to invest anything further. What annual rate of interest must you earn on your investment to cover the entire cost of your child's college education? 13.99 percent 11.08 percent 10.40 percent 12.65 percent 14.62 percent

  • You decided to start saving for your child's college tuition. Your child will start college in...

    You decided to start saving for your child's college tuition. Your child will start college in 25 years. There will be 4 annual tuition payments of $30,000 each. The first payment will be 25 years from now. You will start saving one year from now and will put aside the same amount at the end of every year for 25 years. How much do you have to save every year to have enough to pay the tuition payments. Your savings...

  • Your child is currently 2 years old. You plan to save for the child’s college education...

    Your child is currently 2 years old. You plan to save for the child’s college education expenses by depositing 5% of your annual salary into an account that pays 6% interest compounded annually. If your salary is $100,000 next year when you make the first deposit, and you expect your salary to grow at 4% a year after that. How much do you have saved in 16 years when your child goes to college?

  • Assume the total cost of a college education will be $360,000 when your child enters college...

    Assume the total cost of a college education will be $360,000 when your child enters college in 15 years. You presently have $58,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate

  • Assume the total cost of a college education will be $285,000 when your child enters college...

    Assume the total cost of a college education will be $285,000 when your child enters college in 22 years. You presently have $35,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?

  • Assume the total cost of a college education will be $250,000 when your child enters college...

    Assume the total cost of a college education will be $250,000 when your child enters college in 17 years. You presently have $59,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  • 1. You are current saving for your son's college expenses (tuition, room/board). She is 10 years...

    1. You are current saving for your son's college expenses (tuition, room/board). She is 10 years old and will begin college in 8 years. Set aside for her education you have a brokerage account with $10,000 fully invested in an equity index fund that is expected to earn 10% per year. Your plan is to send your son to a public school where the expenses are currently (at T = 0) $18,000 per year, however you expect the expenses to...

  • You want to have $78,000 in 16 years to help your child attend college. If you...

    You want to have $78,000 in 16 years to help your child attend college. If you can esrn an annual interest rate of 3.4 percent, how much will you have to deposit today? You want to have $78,000 in 16 years to help your child attend college. If you can earn an annual interest rate of 3.4 percent, how much will you have to deposit today? Multiple Choice $45,684.20 $44,182.01

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT