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 investment occurs when the child turns 21. This is also the time that the last withdrawal is made. Determine the monthly deposit required to meet this goal.
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Proud parents wish to establish a college savings fund for their
newly born child. Monthly deposits...
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...
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...
Suppose that the parents of a young child decide to make annual deposits into a savings...
Suppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child's fifth birthday and the last deposit being made on the 15th birthday. Then, starting on the child's 18th birthday, the withdrawals as shown will be made. If the effective annual interest rate is 4% this period of time, what are the annual deposits (A) in years 5 through 15? Please round your answer to...
9. You wish to establish an endowment fund that will provide student financial aid awards every...
9. You wish to establish an endowment fund that will provide student financial aid awards every month, perpetually. To finance the scholarships you will make a series of equal deposits into a savings account. The deposits will be made monthly equal to $2,000 each, with the first one today and the final one in 7 years. The first award is to be granted one month after the last deposit. The savings rate is 5.90% compounded monthly. 1. Construct timelines. 2....
Suppose that the parents of a young child decide to make annual deposits into a savings...
Suppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child's fifth birthday and the last deposit being made on the 15th birthday. Then, starting on the child's 18th birthday, the withdrawals as shown on the diagram below will be made. If the effective annual interest rate is 6% during this period of time, what are the annual deposits in years 5 through 15? Use...
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...
Question 4 0/1pt Parents deposit $9,000 into a savings account at the end of each year...
Question 4 0/1pt Parents deposit $9,000 into a savings account at the end of each year for 22 years to help their child pay for college. The savings account pays 5% interest per year, compounded monthly. The child withdrawals an equal sum twice per year while in college (years 19 through 22). After the last withdrawal at the end of year 22, there is $6,000 remaining in the account. How much wa each semi-annual withdrawal in year 19 through 22?...
Cipro Milda is planning a college fund for her child. When the child joins college in...
Cipro Milda is planning a college fund for her child. When the child joins college in 15 years, the tuition payment for the first semester is expected to be $21,000. Thereafter, tuition payments will be due every six months for the following semester. These payments are expected to increase at an annual inflation rate of 3 percent. The child will graduate in eight semesters, so she will have to make a total of eight tuition payments. If she can earn...
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...
7. Kim and Morgan want to start a college fund for their child. They want to...
7. Kim and Morgan want to start a college fund for their child. They want to have $50,000 in the account by the time the child turns 18 years old. They will deposit $5000 the day they open the account. If the account has an annual interest rate of 4.5%/year compounded monthly, how much should they deposit every month to ensure that they reach their savings goal?
Suppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child's fifth birthday and the last deposit being made on the 15th birthday. Then, starting on the child's 18th birthday, the withdrawals as shown will be made. If the effective annual interest rate is 4% this period of time, what are the annual deposits (A) in years 5 through 15? Please round your answer to...
9. You wish to establish an endowment fund that will provide student financial aid awards every month, perpetually. To finance the scholarships you will make a series of equal deposits into a savings account. The deposits will be made monthly equal to $2,000 each, with the first one today and the final one in 7 years. The first award is to be granted one month after the last deposit. The savings rate is 5.90% compounded monthly. 1. Construct timelines. 2....
Suppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child's fifth birthday and the last deposit being made on the 15th birthday. Then, starting on the child's 18th birthday, the withdrawals as shown on the diagram below will be made. If the effective annual interest rate is 6% during this period of time, what are the annual deposits in years 5 through 15? Use...
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...
Question 4 0/1pt Parents deposit $9,000 into a savings account at the end of each year for 22 years to help their child pay for college. The savings account pays 5% interest per year, compounded monthly. The child withdrawals an equal sum twice per year while in college (years 19 through 22). After the last withdrawal at the end of year 22, there is $6,000 remaining in the account. How much wa each semi-annual withdrawal in year 19 through 22?...
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...
7. Kim and Morgan want to start a college fund for their child. They want to have $50,000 in the account by the time the child turns 18 years old. They will deposit $5000 the day they open the account. If the account has an annual interest rate of 4.5%/year compounded monthly, how much should they deposit every month to ensure that they reach their savings goal?
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