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
Present value = Future value/(1+i)^n
i = interest rate per period
n= number of periods
Present value of deposits and payments = 0
=>
x/(1+0.05/12)^2 + x/(1+0.05/12)^3 + x/(1+0.05/12)^4 - 1000/(1+0.05/12)^7 - 1000/(1+0.05/12)^8 - 1000/(1+0.05/12)^9 = 0
=>
x * [1/(1+0.05/12)^2 + 1/(1+0.05/12)^3 + 1/(1+0.05/12)^4] = 2901.8659772
= 979.43
= 979
Your child is planning attend summer camp for three months, starting 7 months from now. The...
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 dhia is paning toatnd umner camp for 3 months tarting 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? O $11,889 $11,656 $3,996 $3,918 $4,000 $4,080
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?
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?
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You plan to give your wife a ring in 12 months for your 25th anniversary. You will buy the ring in 12 months for $30,000. How much will you have to invest each month, starting next month, for eight months to pay for the ring if your investments earn 5% APR, compounded monthly?
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