ZuoTi.Pro
Question

You are planning to send your child to a summer camp in 10 months. The camp...

You are planning to send your child to a summer camp in 10 months. The camp will cost you $1,500 at that time. You have decided to invest a lump sum of money now that will grow to $1,500 by the time it is needed. Assuming the money grows at a nominal annual interest rate of 18% compounded daily, how much money should you set aside now to have the funds available when needed?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

. nt au x comme oundo p C tナ 0-13 365 串1500 da 书(291 I6 18 Bla ou have to res aeidle nouw

0 0
Add a comment
Know the answer?
Add Answer to:
You are planning to send your child to a summer camp in 10 months. The camp...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • Your child is planning attend summer camp for three months, starting 7 months from now. The...

    Your child is planning attend summer camp for three months, starting 7 months from now. The cost for camp is $1,000 per month, each month, for the three months she will attend. If your investments earn 5% APR (compounded monthly), how much must you invest each month, starting two months from now, for 3 months such that your investment will grow to just cover the cost of the camp? $1,000 $1,004 $979 $996

  • Your child is planning to attend summer camp for 3 months, starting 6 months from now....

    Your child is planning to attend summer camp for 3 months, starting 6 months from now. The cost of the camp is $4,000 per month, each month for the 3 months she will attend. If your investments earn 5% APR (compounded monthly) how much must you invest each month starting next month, for 3 months, such that your investment would just cover the cost of the camp?

  • You want to send your child to one years (12 months) of boarding school starting 6...

    You want to send your child to one years (12 months) of boarding school starting 6 months from now. The cost of the school is $7,000 per month for 12 months. If your investments earn 3% APR, compounded monthly, how much would you have to invest today to cover the cost of the boarding school?

  • You want to create a college fund for a child who is now 5 years old....

    You want to create a college fund for a child who is now 5 years old. The fund should grow to $40,000 in 13 years. If an investment was made available to you that would yield 5% per year, how much must you invest in a lump sum NOW to realize the $40,000 when needed?

  • Question 56 Marks Planning for your wedding which would take place 10 years from now, you started...

    Question 56 Marks Planning for your wedding which would take place 10 years from now, you started to deposit fromm today a lump sum money every quarter for 4 years at nominal interest of 8% so that you can withdraw S50,000 at your wedding day. a) Sketch the cash flow diagram for the above financial plan. b) Calculate the amount of money that has to be deposited every quarter. (2Marks) (4 Marks) Question 56 Marks Planning for your wedding which...

  • 1.Next summer you are planning a trip to Ibiza that will set you back roughly $4100....

    1.Next summer you are planning a trip to Ibiza that will set you back roughly $4100. You have decided to put money aside starting November 30th 2012, with additional, equal payments on February 28th 2013 and May 31st 2013. You wish to have the total sum of the required money for July 31st 2013. Assuming that only the three equal payments are made, how large should the payments be if you earn a simple interest rate of 5%? 2. 5...

  • ignore the handwriting can somebody solve these two . 2 3. Suppose that you are planning...

    ignore the handwriting can somebody solve these two . 2 3. Suppose that you are planning to send your daughter to college in 18 years. Furthermore, assume that you have determined that you will need $100,000 at that time in order to pay for tuition, room and board, party supplies, etc. If you believe that you can earn an average annual rate of return of 8% per year, how much money would you need to invest today as a lump...

  • You have your choice of two investment accounts. Investment A is a 10-year annuity that features...

    You have your choice of two investment accounts. Investment A is a 10-year annuity that features end-of-month $1,525 payments and has an interest rate of 7 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an interest rate of 9 percent, also good for 10 years. How much money would you need to invest in B today for it to be worth as much as Investment A 10 years from now? (Do not round intermediate calculations and...

  • please show calculations. 10) You have invested a lump sum of $50,000.00 that you have received...

    please show calculations. 10) You have invested a lump sum of $50,000.00 that you have received as a bonus from your employer. These funds will be invested for 3 years at 3% annually, compounded monthly. Since you really wanted to purchase a house, you have decided that you will also invest $250.00 monthly for 3 years earning 1.5%, compounded monthly. How much will have at the end of the third year to make a down payment and cover closing costs...

  • 51. You have your choice of two investment accounts. Investment A is a 10 year annuity...

    51. You have your choice of two investment accounts. Investment A is a 10 year annuity that features end of month $1,145 payments and has an interest rate of 7% compounded monthly. Investment B is an annually compounded lump – sum investment with an interest rate of 9%, also good for 10 years. How much money would you need to invest in B today for it to be worth as much as Investment A 10 years from now.

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