A first-year engineering student wants to have $30,000 at graduation 4 years from now to buy a new car. His grandfather gave him $10,000 as a high school graduation present. How much must the student save each year if he deposits the $10,000 today and can earn 12% on both the $10,000 and his earnings in a mutual fund his grandfather recommends?

Q: Your parents invest $10,000 in a college fund when you are born. They find a fund that will return…

A: Initial investment (P) = $10000 Interest rate (r) = 8% Fund duration (n) = 18 years Let the tuition…

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A: future value = 100000 interest rate (i)= 10% no of years  (n)= 18 a) now we will calculate the…

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A: 1) Hence, the account balance after 65 years is $1021906.79.

Q: Suppose your parents have decided that after your graduation at the end of the year they would start…

A: The Present Value of Annuity (PVAF) is the cash value of all future annuity payments discounted at a…

Q: 4. Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and…

A: In this question,  we need to find the constant amount that Holly has to invest at the end of each…

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A: Annual withdrawal = $ 100,000 Annual interest rate = 6% Number of withdrawals = 20   As per formula…

Q: Holly wants to have $250,000 to send a recently born child to college. She sets up a 529 plan and…

A: Future value (FV) = $ 250,000 Annual interest rate (R) = 6% Number of annual investment (N) = 17…

Q: Your oldest daughter is about to start kindergarten in a private school. Tuition is $30,000 per…

A: Tution fee is $30,000 per year. Time period is 13 years Tution fee increase rate is 6% per year Rate…

Q: You need P4,000 per year for four years to go to college. Your father invested P5, 000 in 7% account…

A: Initial deposit (D) = P 5000 Withdrawal in year 17 (W1) = P 4000 Withdrawal in year 18 (W2) = P 4000…

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A: Annual university expenses (E) = GH₵ 30000 Expense period (p) = 4 years Interest rate (r) = 0.14…

Q: After graduating from school, Carl, 30 years old, wants to make a retirement plan for his future…

A: Retirement plan is the scheme in which a person pays in lump sum or instalment payment so as to get…

Q: You would like to have $200,000 in a college fund in 15 years. How much do you need today if you…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

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A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: Susan gets a job upon completion of her MSME degree with a mechanisms design firm. Her starting…

A: Working note:

Q: Tom and Mary James just had a baby. They heard that the cost of providinga college education for…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Your friend is considering investing in a two-year MBA program. Tuition costs will be $60,000 for…

A: An investment is a type purchase of an item or thing with the goal of earning income or rising in…

Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…

A: Inflation rate is the rate at which prices of goods and services increases over a period of time…

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A: Present value is the amount that is invested in order to receive a specific goal in the future…

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A: Since the annual interest rate is not given then we solve the problem by assuming the interest rate…

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A: GIVEN, YEARLY PAYMENT = $1500 N = 15 YEARS R = 12% LET FOUR YEARLY WITHDRAWAL = A  withdrawal from…

Q: After graduating from school, Carl, 30 years old, wants to make a retirement plan for his future…

A: As your question contains multiple sub-parts, we would be answering only first three. For the…

Q: Your uncle Mohammed is celebrating his 33th birthday today and wants to start saving for his…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A professor has two daughters that he hopes will one day go to college. Currently, in-state students…

A: Since, first payment of fees starts at 16th year and we are given fees at current money value, so…

Q: For college graduation, Jose's dad gives him $15,000 toward a car. Jose thinks it through: With 10K…

A: Investment amount (P) = $15000 Amount required = $35000 r = 12% n = 8 years

Q: Your daughter needs to be able to draw $50,000 a year from her college savings fund (you started…

A:

Q: A man wants to help provide a college education for his young daughter. He can afford to invest…

A: The annual investment is the amount to be paid at the end of the period. It is paid on annual basis.…

Q: If your uncle starts making these deposits on his 33th birthday and continues to make deposits until…

A: Saving account is the account which offers interest to the investors. The interest rate on savings…

Q: The Turners have 10 years to save a lump-sum amount for their child’s college education. Today a…

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A: Formula: PV cash flow=Payment×1+rn1+rn

Q: money at the end of ten years

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Q: How much will Lana have in that account at the end of 8th year?

A: In this case Lana is saving $2,000 at beginning of each year and thus to calculate the amount at end…

Q: Your uncle Mohammed is celebrating his 33th birthday today and wants to start saving for his…

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A: Note: “Since you have asked multiple questions, I will solve the first question for you. If you want…

Q: Your friend is considering investing in a two-year MBA program. Tuition costs will be $60,000 for…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: A young engineering student has just graduated in college. He is able to obtain his first job and…

A: Annual deposit = P 5000 Annual interest rate = 12% Future value = $ 2,000,000