Assignment 1

How much money should a grandparent deposit in a college savings fund today for their newborn grandchild in order to provide for 4 uniform annual end of period withdrawals of $20,000 each? The first withdrawal occurs at the end of the 17th year. Use average amount return for the fund = 12%   a. $8,847   b. $9,909   c. $11,098   d. $12, 418   Please use excel and show formulas.

FUTURE VALUES Su Mei’s parents want to put enough money aside for her education by the time she goes to university 10 years from now. If they invest the amounts listed below at the beginning of each year, how much will Su Mei’s education fund have grown by the end of the fifth year and tenth year? Assume that Su Mei’s parents earn 7% on their investment. Year 1 $5,000 Year 2 $6,000 Year 3 $7,000 Year 4 $8,000 Year 5 $9,000

Question 4 Parents decided to set aside money for their child's higher education. The objective is to provide $45,000 in today's dollars after 12 years. Their financial analyst forecasted that the average annual inflation to be 4.5% for the next 12 years. A bank offered a medium risk mutual fund over the next 12 years. The parents will deposit one sum of money now and it is to be cashed by the child after 12 years. If the amount of money available now for deposit is $50,000, what is the minimum rate of return (interest rate) on the educational investment account so that the parents can achieve their objective?

Practice 1 Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65 (she will retire on her 65th birthday). She would like to be able to withdraw $80,000 from her savings account on each birthday for 20 years following her retirement (the first withdrawal will be on her 66th birthday). Your friend intends to invest her money in the local savings bank which offers 4% p.a. compound semi-annually. She wants to make equal annual deposits on each birthday in a new savings account she will establish for her retirement fund. If she starts making these deposits TODAY and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals upon retirement? Any intermediate steps should be rounded to 4 or more decimal places.

Accounting Elizabeth Brown just learned that she received an inheritance from her grandmother. The inheritance provides for Elizabeth to receive $4400 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 8%, what is the value of this inheritance to Elizabeth today? Type of Cash Flow Periods Interest Rate Factor PV of $1 8% 0.6806 FV of $1 8% 1.4693 PV ordinary annuity 8% 3.9927 FV ordinary annuity 8% 5.8666 PV annuity due 8% 4.3121

Excel Online Activity: Required annuity payments 1 Question 1 0/10 Submit HVideo Excel Online Structured Activity: Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $60,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 4%. He currently has $70,000 saved, and he expects to earn 9% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Qoen spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do…

Kal.4   Consider a retirement financial plan where you begin contributing at the age of 25. In this plan you make annual payment of $5000 until you reach the age of 50. Starting from the age of 60 and continuing until the age of 70, you receive annual payments of $15000 assuming an annual discount rate of 3% evaluate the worthiness of this financial plan.

FUTURE VALUEIf you deposit $5,000 in a bank account that pays 10% interest annually to buy a car after you graduate from college, how much would be in your account after 5 years? Group of answer choices $5,000 $8,053 $5,900 $10,000

Question content area top Part 1 ​(Saving for retirement—future value of an​ annuity)  Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for​ retirement, which is 35 years away. ​ They'll both receive an annual return of 12 percent on their investment over the next 35 years. Selma invests $2,000 per year at the end of each year only for the first 10 years of the​ 35-year period—for a total of $20,000 saved. Patty​ doesn't start saving for 10 years and then saves $2,000 per year at the end of each year for the remaining 25 years—for a total of $50,000 saved. How much will each of them have when they​ retire?       Question content area bottom Part 1 a.  How much will Selma have when she​ retires?   ​$enter your response here   ​(Round to the nearest​ cent.) Part 2 b.  How much will Patty have when she​ retires?   ​$enter your response here   ​(Round to the nearest​ cent.)

Case A - You have decided to start planning for your retirement. You already have $11,000 in your investment account. You plan to put an additional $4,000 into the account at the BEGINNING of each year for the next 10 years and then put $6,000 into the account at the BEGINNING of each of the following 30 years. Your account is expected to grow at 6.5% interest (tax free) annually. Prepare a schedule to show (1.) the year (1 through 40), (2.) the beginning balance each year, (3.) the amount of interest earned each year, (4.) the deposit each year, and (5.) the ending balance each year. Format each of the dollar amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of interest and (2) the amount of deposits during the entire 40 year (10 + 30) year time. Case B - You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period…

Independent Activity 2Starting on her 30th birthday, a woman will invest an amount every yearshould be the amount invested should she want her fund toon her birthday in an account that grows at an annual rate of 7%. WhatP 300,000.00 just before her 65th birthday?

Personal Finance Problem   Interest rate for an annuity April Bartrick has just received an inheritance of $1,000,000. She plans to invest the entire sum in an annuity, paying at the end of each year for the next 20 years. Two personal bankers suggest different long-term, fixed income instruments that she can invest in. However, the annual payment from the first investment is $94,393 and $117,459 from second investment.(Please write detailed steps)   a. What is the rate of return offered by the two investments (rounded off to the   nearest whole percent)?   b. April is willing to settle for an annuity that carries an interest rate assumption of   9% per annum. What minimum annual payment would be acceptable for her?

MC algo 5-17 Calculating Present Values You want to have $77,000 in 18 years to help your child attend college. If you can earn an annual interest rate of 3.3 percent, how much will you have to deposit today? Multiple Choice $42,922.49 O $37,357.48 $41,551.30 $39,349.42 $24716 07

the bank compounding, How long will Personal Finance Problem Funding your retirement You plan to retire in exactly 20 years. Your goal is to cre ate a fund that will allow you to receive $20,000 at the end of each year for the 30 years between retirement and death (a psychic told you that you would die exactly 30 years after you retire). You know that you will be able to earn 11% per year ing the 30-year retirement period. a. How large a fund will you need when you retire in 20 years to provide the 30-year, $20,000 retirement annuity? b. How much will you need today as a single amount to provide the fund calcu- lated in part a if you earn only 9% per year during the 20 years preceding re- tirement? dur- c. What effect would an increase in the rate you can earn both during and prior to retirement have on the values found in parts a and b? Explain. retire- d. Now assume that you will earn 10% from now through the end of ment. You want to make 20 end-of-year deposits into your retirement…

Accounting 1:Kaitlyn wants to set up a fund for his son's education such that he could withdraw $2,050.00 at the beginning of every 3 months for the next 2 years. If the fund can earn 2.20% compounded semi-annually, what amount could he deposit today to provide the payment?

Finance • You plan to retire in 30 years. • In 50 years, you want to give your daughter a $500,000 gift. • You will receive an inheritance of $200,000 in 25 years. • You think you will want $50,000 per year for 30 years when you retire (the first withdrawal will come one year after retirement). • You will begin saving an amount to meet your retirement goals one year from today, and your last contribution will be in 30 years. Required: • If you think you can make 9% on your investments, how much will you need to save each year for the next 30 years to meet your retirement goals?

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.)

Time Value of Money Calculations  q12 Today Dante and Sharon had their first child.  All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their child’s future. They are nervous about the stock market so they’ve decided to put their money in a GIC which earns an interest rate of 2.6%, compounded monthly. How much money will they have in the account by their child’s 18th birthday?  How much interest will be earned?

Accounting Question 4. Today is Mr. Wang's 30th birthday. He plans to retire on his 65th birthday. Assuming that Mr. Wang will deposit $20000 into the investment account at the beginning of each month from today, the account will earn an actual return of 4.9070208% every year in the first 15 years and 4.8% every year and interest every month in the next 20 years. The first contribution is paid today and the last contribution is paid one month before the day of retirement on your 65th birthday. a) Try to find an account balance on your 65th birthday b) Try to calculate total interest earned c) Try to calculate the total single interest d) Try to calculate compound interest

Question 3 Cecilia and Salvador plan to send their daughter to university. To pay for this they will contribute 10 equal yearly payments to an account bearing interest at the APR of 9.5%, compounded annually. Five years after their last contribution, they will begin the first of five, yearly, withdrawals of $38,000 to pay the university's bills. How large must their yearly contributions be?

Engineering Economy Question is image   To fund their child's college expenses, a family plans to invest $540 to a bank account at the end of this year. They will invest for the next 10 years and increase investment amount by 12% each year. What is the approximate total amount at the end of the planning horizon if the interest rate is 25%?

Question 3: A father wants to set up a bank account that will pay his daughter $(10000) at the end-of-quarter (EOQ) 4 and $(2x1) at EOQ 8. He will fund this account by making quarterly payments of $A from the present (time zero) through EOQ 7. If the quarterly percentage rate is 4%, what is the value $A that must be deposited into the account