If your parents deposited $15,000 into an account for you when you were born as part of a college savings fund and that count is earning 10% annually, how much will you have in your college savings fund on your 18th birthday
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A: Amount deposited each month in the bank = 1,000 USD Annual deposited amount (PV) = 1,000 USD × 12…
Q: need
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A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.
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Q: Grandparents plan to open an account on their grandchild's birthday and contribute each month until…
A: a) Answer: Annuity due. Annuities are regular periodic payments made over a specified period. When…
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A: FV Ordinary Annuity=C×(1+i)n−1i where, C=cash flow per period i=interest rate=0.1512…
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A: Initial investment = $10,000 Period = 18 years Interest rate = 0.1024 Accumulated amount = ?
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A: Investment (P) = $ 10,000 Interest rate= 6% Semi annual interest rate (r) = 6%/2 = 3% Period = 20…
Q: How much money can they expect to withdraw?
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A: Annual deposit (P) = $1,000 Number of annual deposits (n) = 18 Interest rate (r) = 7%
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If your parents deposited $15,000 into an account for you when you were born as part of a college savings fund and that count is earning 10% annually, how much will you have in your college savings fund on your 18th birthday?
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- As a savings program toward their child’s college education, parents decide to deposit 100 dollars at the end of every month into a bank account paying interest at the rate of 6% per year compounded monthly. If the savings program began when the child was 6 years old, how much money would have accumulated by the time the child turns 18?A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $80,000 saved up for when she goes to college in 15 years, assuming the account earns a 8% annual return. Annual deposit:On your child’s 1st birthday, you open an account to fund his college education. You deposit $300 to open the account. Each year, on hisbirthday, you make another deposit. Each subsequent deposit is 8% larger than the previous one. The account pays interest at 5%/year compounded annually. How much money is in the account immediately after the deposit on his 18th birthday?
- You are planning on having your first child next month and your parents have told you that they are going to open an account with $3,000 on the day your child is born. The money is to be used for college. You plan to also put $1,500 of your own money into the same account on the day your child is born, and then another $1,500 into the account each year on your child's birthday, through his/her 18th birthday. If the account averages an 8% annual return, what will the account balance be on your child's 18th birthday? Please use appropriate excel formula and show how you arrived at your answer.When you were born, your grandfather established a trust fund for you in a bank. The account has been earning an annual interest of 11%. If this account will be worth 150,000 USD on your 20th birthday, how much did your grandfather deposit on the day you were born?Yu plan to deposit $1,000 in Year 1, $1,200 in Year 2 and $2,000 in Year 4 in your savings account. Youthink that you can earn 6% per year. How much will you have in your account in Year 6?
- When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a fixed interest rate of 15 percent. On your 18th birthday, your parents decide to withdraw the money that they deposited to pay for your college tuition. How much money can they expect to withdraw?On the day your daughter is born, you deposit $1,000 in a college savings account that earns 8% compounded annually. On each of her birthdays thereafter, up to and including her 18th birthday, you deposit an additional $1,000. How much money is in the college account the day after her 18th birthday? a. $37,450 b. $38,950 c. $41,450 d. $46,800.A couple wants to set up a college fund for their child. The fund will give the child $1,000 per month for 48 months. The first withdrawal will occur when the child turns 18 years old. Assume that the college fund will earn j12=6%. a) How much money will need to be in the account on the child's 18th birthday in order to sustain the withdrawals? b) How much money should be set aside to establish the fund on the child's first birthday?