A man invests P 20,000 now for the college education of his 2 year old son. If the fund earns 10% effective, how much will the son get each year starting from his 18th to the 22nd birthday?
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- 2. The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. There is a 30% chance the cost will increase by 2% per year, a 40% chance the cost will increase by 3% per year, and a 30% chance the cost will increase by 4% per year over the next 5 years. Calculate the expected value of the present worth at an interest rate of 10% per year.At 2% interest rate, how much should you invest today to be able to withdraw 2,958 annually for 5 years it payments are done every beginning of the month?A gamer decides to buy the latest state-of- the-art gaming laptop. The gamer sets aside a value of USD 15,000 per month for all of his wants. Given his budget, the gamer can afford to buy a gaming laptop for a down payment of USD 8,000 and a monthly annuity with a value not exceeding 40% of his "WANTS Budget". If the gaming laptop seller agrees to the down payment value, and the balance payable in 5 years at 20% per year payable on a monthly basis, what is the maximum price of the gaming laptop he can afford to purchase?
- A graduating highschool student decided to take a year off and work to save money for college. The student plans to invest all money earned in saving account earing 6% interest, compounded quarterly. The student hopes to have $5000 by the time school starts in 12 months. How much money will the student have to save each month?Suppose that the maintenance for a piece of equipment costs $300 EOY1 and increases by 15% every year for 5 years. The value of money is 9%. What is the equivalent present cost over the time horizon?Solve by using formulas. (Round your answer to the nearest cent.) Ordinary Annuity AnnuityPayment PaymentFrequency TimePeriod (years) NominalRate (%) InterestCompounded Future Valueof the Annuity (in $) $3,000 every 6 months 5 5.0 semiannually $
- SHOW COMPLETE DETAILS AND SOLUTION . 4. A new civil engineer employee start a savings plan in which he saves P 10,000 eachyear for 15 years. He makes her first payment at age 22 and after paying for 15 yearsshe leaves the accumulated sum in the savings plan until she reach age 65. If thesavings plan pays 10% per year, how much will be in the savings account when sheage 65?5. Mr. Jo needs P 4,000,000 immediately to pay for a new home. Having insufficientfund for this, he borrows P 2,000,000 from an insurance company and repay the loanevery six months for 15 years, the first payment being at the end of 8 years from now.If the insurance company charged him 8% compounded semiannually, how much isthe amount of each payment?Only typed answer You invest $5,000 in a project that makes 6% each year. How much do you have after 7 years?2. Alvin Yu was born on January 1, 1988. On Jan. 1 1989, his father starts a fund that is intended to help him in two ways. The fund is to be established by a payment of 2,000 on Janl, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide his college education; it is provided that 3,000 shall be withdrawn for this purpose for each year for 5 year starting at the boy's 18th birthday. The remainder of the fund is accumulated until Juan is 30 yrs. old and is to be paid to him to help him purchase a house. If the fund earns 10%, how much will be paid to Juan on his 30th birthday? DRAW THE CASH FLOW DIAGRAM.
- 3) Which interest rate should be deposited in order to be $ 20000 in 12 years as 5000 TL. Show your solution.PLS ANSWER AND SHOW CASH FLOW.A company wants to provide a retirement plan for an employee who is aged 55 now. The plan willprovide her with an annuity‐immediate of $7,000 every year for 15 years upon her retirement at theage of 65. The company is funding this plan with an annuity‐due of 10 years. If the rate of interest is5%, what is the amount of installment the company should pay?How much money must you invest today in order to withdraw 13,724 anually for 5 years if the interest rate is 4.32%?