A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $ 349500 x (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $31,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals

A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $ 349500 x (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $31,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 1DTM

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A young couple wants to have a college fund that will pay $20,000 at the end of each half-year for 8 years. (a) If they can invest at 6%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $ (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $36,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals
4. Suppose you make an annual contribution of BD300 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution AGE Beginning Balance Ending Balance Deposit Interest
young couple wants to have a college fund that will pay $35,000 at the end of each half-year for 8 years. (a) If they can invest at 6%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.)
A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8 years. (a) If they can invest at 9%, compounded semiannually, how much do they need to invest at the end of each 6- month period for the next 18 years in order to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $35,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals
Listen The Chan family would like to establish a bursary at Camosun College. The bursary will pay $2,000 to a deserving finance student each year. Assuming that the payments will never end and that the funds can earn j1=3.5%, how much will it take to establish the bursary? Assume that the payments are at the end of each year. Your Answer:
4. Suppose you make an annual contribution of BD100 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution
WITH SOLUTION PLS Suppose you make an annual contribution of P8,698 each year to a college fund for a niece. He is 6 years now, and you will start next year and make the last deposit when he is 18. The fund is a money market account earning 5.29% per year. What will it be worth immediately after the last deposit?
K Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $55 per month into an account with an APR of 7%. ... Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) O A. No, because the amount that will be in the college fund, $ is less than the goal of $65,000. OB. Yes, because the amount that will be in the college fund, $ is more than the goal of $65,000. 3
young couple wants to have a college fund that will pay birr 30,000 at the end of each half-year for 10 years.(a).If they can invest at 12%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years in order to begin making their college withdrawals 6 months after their last investment?Suppose 10 years after beginning the annuity payments, they receive an inheritance of birr 60,000 that they contribute to the account, and they continue to make their regular payments as found in part (b)How many college withdrawals will they be able to make before the account balance is 0?
Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10% annual interest rate, compounded quarterly, in order to have $30,000 in the fund at the end of 10 years? Question content area bottom Part 1 They should deposit $enter your response here. (Round up to the nearest cent.)
13. You have just made your first $4,000 contribution to your retirement account. Assuming you earn an 11 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?). 14. You are saving up for a down payment on a house. You will deposit $600 a month for the next 24 months in a money market fund. How much will you have for your down payment in 24 months if the fund earns 12% APR compounded monthly?
(PLEASE ANSWER NUMBER 3) Scenario: Suppose you have a new baby. When the child is 18 years old and ready to attend college, you want to be in a position to contribute $50,000 toward their education. 1. Assume you invest $15,000 in a mutual fund (e.g. money market fund) at an APR of 7% compounded quarterly. How long, to the nearest tenth of a year, will it take the $15,000 to grow to $50,000? Solve using logarithmic equations. Round your answer to the nearest whole number. Explain your results. 2. At the end of 18 years, will your investment have grown to the $50,000 needed for your child’s college fund? 3. Assume you invest $15,000 in a mutual fund (e.g. money market fund) with interest compounded continuously, what rate of interest will you have to earn in order for the $15,000 to grow to $50,000 in 18 years? Round your answer to the nearest tenth of a percent. Explain what this answer means in comparison with the results of #1 and #2 above in terms of the stated goal. 4. Assume your…