A couple plans to save for their child's college education. What principal must be deposited by...
A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born in order to have $37,000 when the child reaches the age of 18? Assume the money earns 8% interest, compounded quarterly. (Round your answer to two decimal places.)
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A couple plans to save for their child's college education. What
principal must be deposited by...
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...
A married couple are trying to finance their four-year-old son's college education. Money can be deposited...
A married couple are trying to finance their four-year-old son's college education. Money can be deposited at 9 % compounded quarterly. What end-of-quarter deposit must be made from the son's 4th birthday to his 18th birthday to provide $60,000 on each birthday from the 18th to the 21st? (Note that the first deposit comes three months after his 4th birthday and the last deposit is made on the date of the first withdrawal.)
A couple is planning their 3 year old son's college education. They established a college fund...
A couple is planning their 3 year old son's college education. They established a college fund that earns 12% compounded quarterly. What annual deposit must be made from the son's 3 birthday (now) to his 18th birthday to meet the future college expenses of 1,000 monthly fron the 19th birthday to the 21th birthday of their son?
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...
Calculate the money needed to achieve the financial goals of these people A. The parents of...
Calculate the money needed to achieve the financial goals of these people A. The parents of a baby wish to establish a college fund for their child. They deposit $100 every month into an account for 18 years. The money earns 6 3/8% interest compounded monthly. Find the future value of this account. B. How much money can the student withdraw from the account in "Part A" every month (including summer school) for 4 years of the money is now...
2. As you may know a college education is expensive. Some parents start saving early for...
2. As you may know a college education is expensive. Some parents start saving early for their child's education. Consider this scenario. Your child will need $22,000 when they are 18, $25,000 at age 19, $28,000 at 20, and $31,000 at 21. Assume you can invest at 6% compounded annually. You have two options: a) Deposit a lump sum at year 1 and let it grow until enough accrues to cover the education expense. How much would need to be...
A couple is planning to finance its three-year-old son's university education. Money can be deposited at...
A couple is planning to finance its three-year-old son's university education. Money can be deposited at 6% compounded quarterly. What quarterly deposit must be made from the son's 3rd birthday to his 18th birthday to provide $5000 on each birthday from the 18th to the 21st? (Note that the first deposit is made three months after the 3rd birthday and the last deposit is made on the date of the first withdrawal.)
Suppose that a young couple has just had their first baby and they wish to ensure...
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. The amount the couple placed in a college savings account for their daughter will be worth $97,332 on her 18th birthday. Suppose college tuition, books, fees, and other costs average $13,000 per year today. On average, these costs have historically increased at a rate of 4% per year. Assume that college...
Your clients want help figuring out how much they need to save for their child's education....
Your clients want help figuring out how much they need to save for their child's education. If your clients' child is currently 4 years old and will start college at 18 years of age, how much do they need to save at the end of each month to reach their goal? Assume the following: • You estimate that a year of tuition in line with your clients' goal is $7,000 in today's dollars • College expenses inflate at 4.4% per...
11 Calculating Interest Rates. Assume the total cost of a college education will be $250,000 when...
11 Calculating Interest Rates. Assume the total cost of a college education will be $250,000 when your child enters college in 18 years. You presently have $25,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Calculating the Number of Periods. At 10 percent interest, how long does it take to double your money? To quadruple it? 12
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...
Calculate the money needed to achieve the financial goals of these people A. The parents of a baby wish to establish a college fund for their child. They deposit $100 every month into an account for 18 years. The money earns 6 3/8% interest compounded monthly. Find the future value of this account. B. How much money can the student withdraw from the account in "Part A" every month (including summer school) for 4 years of the money is now...
2. As you may know a college education is expensive. Some parents start saving early for their child's education. Consider this scenario. Your child will need $22,000 when they are 18, $25,000 at age 19, $28,000 at 20, and $31,000 at 21. Assume you can invest at 6% compounded annually. You have two options: a) Deposit a lump sum at year 1 and let it grow until enough accrues to cover the education expense. How much would need to be...
A couple is planning to finance its three-year-old son's university education. Money can be deposited at 6% compounded quarterly. What quarterly deposit must be made from the son's 3rd birthday to his 18th birthday to provide $5000 on each birthday from the 18th to the 21st? (Note that the first deposit is made three months after the 3rd birthday and the last deposit is made on the date of the first withdrawal.)
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. The amount the couple placed in a college savings account for their daughter will be worth $97,332 on her 18th birthday. Suppose college tuition, books, fees, and other costs average $13,000 per year today. On average, these costs have historically increased at a rate of 4% per year. Assume that college...
Your clients want help figuring out how much they need to save for their child's education. If your clients' child is currently 4 years old and will start college at 18 years of age, how much do they need to save at the end of each month to reach their goal? Assume the following: • You estimate that a year of tuition in line with your clients' goal is $7,000 in today's dollars • College expenses inflate at 4.4% per...
11 Calculating Interest Rates. Assume the total cost of a college education will be $250,000 when your child enters college in 18 years. You presently have $25,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Calculating the Number of Periods. At 10 percent interest, how long does it take to double your money? To quadruple it? 12
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