A couple is planning to finance its three-year-old son's university education. Money can be deposited at 9% compounded quarterly. What quarterly deposit must be made fromthe son's 3rd birthday to his 18th birthday to provide $10000 on each birthday from the 18th to the 21st? (Note that the first deposit is made three months after the 3rd birthdayand the last deposit is made on the date of the first withdrawal.)(keep 2 decimal places)Answer:

$166.22Explanation:Use the formula for the future value of a series of periodic deposits:FV = PMT ×…

Answered: A couple is planning to finance its…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
A couple plans to save for their child's college education. What principal must be deposited by the parents when their child is born to have $42,000 when the child reaches the age of 18? Assume the money earns 8% interest compounded quarterly. Round your answer to two decimal places.)
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 $43,000 when the child reaches the age of 18? Assume the money earns 8% interest, compounded quarterly. (Round your answer to two decimal places.)
A father wants to set aside money for his 5-year old son's future college education. Money can be deposited in a bank account that pays 8.28 % per year, compounded annually. What equal deposits should be made by the father on his son's 6th through 17th birthday, in order to provide Php 5507 on the son's 18th, 19th, 20th, and 21st birthday? Round off to two decimal places.
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 $42,000 when the child reaches the age of 18? Assume the money earns 5% interest, compounded monthly. (Round your answer to two decimal places.)
A couple is planning to finance its three-year-old son's college education. Thecouple can deposit money at 12% compounded quarterly. What quarterlydeposit must be made from the son's 3rd birthday to his 18th birthday in order to provide $30,000 on each birthday from the 18th to the 21st? (Note that the last deposit is made on the date of the first withdrawal.)
New parents wish to save for their newborn's education and wish to have $47,000 at the end of 19 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 4.3% compounded annually? (Round your answers to two decimal places.)$ How much interest would they earn over the life of the account?$
A man has children aged 12, 15, and 20. He purchases annuities for each one that pay 3,000 per year with the first payment happening one year from today and continuing as long as the recipient is under 30. The annual interest rate is 8%. What is the total cost of these annuities? Round to 2 decimal places.
A young couple wishes to accumulate $35,000 at the end of four years so that they may make a down payment on a house. What should their equal end-of-year deposits be accumulate the $35,000, assuming a 6% rate of interest? $7,718 $8,000 $6,915 $8,765
A couple who borrow $70,000 for 15 years at 8.4%, compounded monthly, must make monthly payments of $685.22. A) Find their unpaid balance after 1 year. (Round your answers to the nearest cent.) B) During that first year, how much do they pay towards the principle? (Round your answer to the nearest cent.) C) During that first year, what are their total payments? (Round your answer to the nearest cent.) D) During that first year, how much interest do they pay? (Round your answer to the nearest cent.)
Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 7%, compounded monthly, if they want the balance to be $170,000 at the end of 18 years? (a) State whether the problem relates to an ordinary annuity or an annuity due. (b) Solve the problem. (Round your answer to the nearest cent.)
On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw $5000 per year for five years. If the first withdrawal will be on the child's 18th birthday, how much should the parent deposit? The rate is 5% annually.

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

SEE MORE TEXTBOOKS