ZuoTi.Pro
Question

suppose you want to create a " college fund" for tour newborn child and plan to...

suppose you want to create a " college fund" for tour newborn child and plan to deposit $952 in a bank account at the end of each of the next 10 years. if the account paid 8% interest per year, hiw much will be i. the account at the end of the 10th year?
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

FV of Annuity = Annuity * [{(1 + r)n - 1} / r]

= $952 * [{(1 + 0.08)10 - 1} / 0.08]

= $952 * [1.1589 / 0.08]

= $952 * 14.4866 = $13,791.21

0 0
Add a comment
Know the answer?
Add Answer to:
suppose you want to create a " college fund" for tour newborn child and plan to...
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

  • 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...

  • 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...

  • Suppose you want to buy a car today. If you can afford payments of $493 per...

    Suppose you want to buy a car today. If you can afford payments of $493 per month and want to pay the loan back over the next 7 years. Assuming no down payment is required, how much can you borrow if the bank will charge you an annual percentage rate of 3% APR? (Work out the problem on separate sheet of paper before entering the answer.) Answer: Check Suppose you racked up $33317 of student loan and the interest is...

  • 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?

  • 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 4.596/year compounded monthly, how much should they deposit every month to ensure that they reach their savings goal? SEIKI

  • 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?

  • Julio is planning to save for his newborn daughter's college tuition, to be paid in 18...

    Julio is planning to save for his newborn daughter's college tuition, to be paid in 18 years. The amount he wishes to have by that time is $65,000. He plans to deposit $2,500 in a bank account every year for 18 years, starting next year. Suppose the account pays 2% interest on deposits, compounded annually. How much would he need to deposit right now, to make up the remaining amount necessary by the end of 18 years?

  • 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...

  • You want to save for your child’s college. Your child will start to college in 18...

    You want to save for your child’s college. Your child will start to college in 18 years and you want to have $152698 at that time. You find a saving plan that will pay 6.0% compounded weekly (52 times per year). How much will you have to deposit weekly to accomplish this?

  • 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?

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