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?
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
=40000/(1+5%)^13
=21212.85
the above will be answer..
You want to create a college fund for a child who is now 5 years old....
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?
You want to save for retirement. Assuming you are now 20 years old and you want to retire at age 60, you have 40 years to watch your investment grow. You decide to invest in the stock market, which has earned about 8% per year over the past 80 years and is expected to continue at this rate. You decide to invest $2,000 today.
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 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 save for retirement. Assuming you are now 20 years old and you want to retire at agee 50, you have 30 years to watch your investment grow. You decide to invest in the stock market, which has earned about 10% per year over the past 80 years and is expected to continue at this rate. You decide to invest $1,000 today. Required: How much do you expect to have in 30 years? (FV of $1, PV of...
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 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?
Austin Miller wishes to have $600,000 in a retirement fund 30 years from now. He can create the retirement fund by making a single lump-sum deposit today. Use your financial calculator or the appendixes to determine the lump sum amount needed if the fund that earns 6% annually. $ How much would Austin need to have on deposit at retirement in order to withdraw $45,000 annually over 15 years in the retirement fund earning 6%? $
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?
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?