Franklin Templeton has just invested $10,360 for his son (age one). This money will be used for his son's education 17 years from now. He calculates that he will need $44,848 by the time the boy goes to school. What rate of return will Mr. Templeton need in order to achieve this goal? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final
Q: Your younger sister, Brittany, will start college in five years. She has just informed your parents…
A: given, A = $30,000 r=10% n = 4 years
Q: ur client has asked you what would be needed to fund your 2 children’s future college costs. Assume…
A: Future planning is needed for the education of the children and you have to save for that.
Q: Mr. and Mrs. Revilla decided to sell their house and to deposit the fund in a bank. After computing…
A: Determine the present value of the annual withdrawals after 5 year of deposit using the Excel PV…
Q: How much of their annual income do you recommend the Martins hold in some form of liquid savings as…
A: Ideally One should save, should invest and should hold in liquid assets. All these contribute to a…
Q: A father, whose dream is to see his son grow up to be an engineer, plans to invest a certain sum…
A: given, Annuity ( A)= $15000 rate (r) =12% n = 9 (10th to 18 th year)
Q: Your brother turned 30 today, and she is planning to save $8,000 per year for retirement, with the…
A: N = 30, PV =0, PMT = 8000, rate = 7% use FV function in Excel amount accumulated at retirement =…
Q: You want to set aside money in order to present your son with a 25,000 trip upon his graduation from…
A: Present value is the current worth of the future payment. ------------------------------ Given:…
Q: Your parents will retire in 29 years. They currently have $250,000 saved, and they think they will…
A: Future value is referred to as the value of the current assets at the date in future on the basis of…
Q: Mohammed estimate that he will need RO 10,000 in 5 years to fund his university education. How much…
A: Compound interest is referred as the in interest calculated on principal along with all accumulated…
Q: Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to…
A: Future value:
Q: Question 1 What would be the better outcome, renting or buying and by how much? (Show your work and…
A: Pierre is deciding on whether he should buy a house or rent it. If rented the expense will be $1500…
Q: John needs to invest to help with his child's college fund. How much would he have to invest to have…
A: Given: Amount = $67,300 Years =13 Interest rate = 2.17%
Q: . Agunton is planning for her retirement. He is 30 years old today and would like to have N500,000…
A:
Q: Your parents will retire in 19 years. They currently have $330,000 saved, and they think they will…
A: Interest rate is the rate of return to be earned from an investment for a particular period. Given:…
Q: Your parents will retire in 18 years. They currently have $250,000 saved, and they think they will…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: You're grandfather has asked you to help him determine how much money he can take out of his…
A: I/Y = rate = 5% NPER = Number of years = 25 PV = Present value = -500,000 CPT PMT = ?
Q: Your younger sister, Linda, will start college in five years. She has just informed your parents…
A: Annuity An annuity is a series in which periodic payments are made for a specific period. The main…
Q: Barry has an annual salary of $85,000 and he plans on working He is concerned that should he die…
A: Present value of annuity Annuity is a series of equal payment at equal interval over a specified…
Q: Nana and Abena Sarfo are saving for the university education of their newborn daughter, Akosua. The…
A: Annual university expenses (E) = GH₵ 30000 Expense period (p) = 4 years Interest rate (r) = 0.14…
Q: A young couple is planning for the education of their two children. They plan to invest the same…
A: Annuities are insurance contracts that promise to pay you regular income either immediately or in…
Q: Under these assumptions, how much can he spend each year after he retires?
A: Future value: Future value is the amount derived from compounding the present amount or cashflows.…
Q: Today Dante and Sharon had their first child. All of the grandparents gave them money to help out,…
A: Given:
Q: Bart is a college student who has never invested his funds. He has saved $1,250 and has decided to…
A: Money invested = $1,250 Annual rate of return = 4.19% Cost of fee = $24
Q: Your parents will retire in 23 years. They currently have $300,000 saved, and they think they will…
A: Time value of money means that the worth of currency in present terms is different from the worth in…
Q: What interest (to the closest percent) must she earn in this account to achieve this financial…
A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…
Q: You are a young urban professional in your late 20’s and want to save up for your wedding and other…
A: The question is based on the concept of interest calculation on investment based on Minimum Accepted…
Q: Ross has decided that he wants to build enough retirement wealth that, if invested at 5 percent per…
A: The amount required for the retirement can be calculated by using the present value of annuity…
Q: to pay his son’s university tuition fees for 4 years starting 18 years from now. The current annual…
A: There is need of planning for the future cost of education because compounding increase value of…
Q: A man who won 730,000 pesos in a lottery decided to place 50% of his winnings in a trust fund for…
A: A man won a lottery of worth = 730,000 pesos He invested 50% in trust funds for his son education =…
Q: Liam dreams of starting his own business to import consumer electronic products to his home country.…
A: Future Value required = 300,00 Time Period = 10 years Initial Investment = 28,850 Saving each year =…
Q: Ian would like to save $1,500,000 by the time he retires in 40 years. If he believes that he can…
A: Amount required after 40 years = $ 15,00,000 Interest Rate(r) = 7% Years(n) = 40 Annual Deposit…
Q: Your parents will retire in 19 years. They currentlyhave $350,000 saved, and they think they will…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Professor Molloy plans to purchase a custom Maserati in five years in order to stave off a midlife…
A: Present value: It is the present worth of future investment in respect of the rate of return. this…
Q: It is Jerry's 14th birthday and his parents plan to invest some money so that they will have $17 000…
A: Amount required at 18th birthday = $17000 Quarterly interest rate (r) = 0.0215 (i.e. 0.086 / 4)…
Q: A man wants to help provide a college education for his young daughter. He can afford to invest…
A: The annual investment is the amount to be paid at the end of the period. It is paid on annual basis.…
Q: determine the amount Professor Molloy would have to invest today in order to have his Maserati…
A: The present value is the discounted value of the future value. Future value is the value of cash…
Q: Your parents will retire in 29 years. They currently have $240,000 saved, and they think they will…
A: Number of years to retirement is 29. The amount saved is $240,000 The amount required in 29 years…
Q: Franklin Templeton has just invested $9,260 for his son (age one). This money will be used for his…
A: We will use rate function in excel to calculate the return
Q: The Turners have 10 years to save a lump-sum amount for their child’s college education. Today a…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: To help with his child's college fund, Ravi needs to invest. Assuming an interest rate of 2.23%…
A: Interest Rate 2.23% Time Period 15 Future Value $ 94,300.00
Q: sty needs to have $20,000 at the end of 6 years to fulfill her goal of purchasing a small…
A: Compound interest is determined by multiplying the starting principal balance by one and then…
Q: Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per year…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
Q: London purchased a piece of real estate last year for $84,500. The real estate is now worth…
A: Income = Investment * ( 1 + total return )
Q: Magnum plans to retire in 28 years with an amount of $2,500,000. His financial advisor has found a…
A: Period (t) = 28 Years Interest rate (r) = 5% Future value (FV) = $2,500,000
Q: You calculate that you will need $75,000 in ten years to be able to pay for your daughter's college…
A: The question is based on the concept of Financial Accounting.
Q: Kevin is 25 years old and just finished taking a Personal Finance class. He wants to start a…
A: 7a) Future value needed (F) = $1000000 Years to accumulate (n) = 30 r = 12% per annum Let the one…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $26,600. What interest rate, compounded annually, must be earned to accumulate enough to pay for the trip? Note: Use tables, Excel, or a financial calculatorAnswer the following question step by step using a financial calculator. Show all working step by step: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways?a. Annually b. Quarterly c. MonthlyAnswer the following question step by step using the TVM formulas and the financial calculator. Show all working: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3 years. She will have enough to pay for the trip if she invests $2,500 per year until that anniversary and plans to make her first $2,500 investment on their first anniversary. Assume her investment earns a 4 percent interest rate, how much will she have saved for their trip if the interest is compounded in each of the following ways?a. Annually b. Quarterly c. Monthly
- Sharpy and Jane are saving for the college education of their newborn son, Kasuba. The couple estimate that college expenses will run K30,000 per year when their son reaches college in 18 years. The annual interest rate over the next few decades will be 14 percent.How much money must they deposit in the bank each year so that their son will be completely supported through four years of college? To simplify the calculations, assume that Kasuba is born today. His parents will make the first of his four annual tuition payments on his 18th birthday. They will make equal bank deposits on each of his first 17 birthdays, but no deposit at date 0.You would like your child who was bom today to be a millionaire eventually. To that end, you deposit $9,000 in an investment account that earns an average annual rate of return of 10.5%. The money in the account will be distributed to your son whenever the total reaches $1,000,000. How old will your son be when he gets the money (rounded to the nearest year)? O 47 years O 48 years O 46 years O 49 years.John needs to invest to help with his child's college fund. How much would he have to invest to have s67,30o after 13 years, assuming an interest rate of 2.17% compounded annually? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. ?
- Sheldon Cooper and Amy Fowler are married and live in Pasadena, California. They have as a new investment goal to create a college fund for their newborn daughter. They estimate that they will need $195,000 in 18 years. Assuming that the Cooper-Fowler family could obtain a return of 5 percent, how much would they need to invest annually to reach their goal? Use Appendix A-3 or the Garman/Forgue companion website. Round your answer to the nearest dollar. Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places.Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $26,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $33,800. What interest rate, compounded annually, must be earned to accumulate enough to pay for the trip? Note: Use tables, Excel, or a financial calculator. Do not round your Intermediate values. Enter your answer rounded to the nearest whole percentage. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Solve for i Present Value: Future Value Th (M $ 26,000 3 8%Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $24,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $31,000 and he believes he can earn 8% interest, compounded annually, on his investment. Complete the following table to calculate the future value. Will he be able to pay for the trip with the accumulated investment amount? Note: Use tables, Excel, or a financial calculator. Round your final answers to the nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
- Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $23,500 and he believes he can earn 5% interest, compounded annually, on his investment. Complete the following table to calculate the future value. Will he be able to pay for the trip with the accumulated investment amount? Note: Use tables, Excel, or a financial calculator. Round your final answers to the nearest whole dollarConsider the case of the following annuities, and the need to compute either their expected rate of return or duration. Ryan inherited an annuity worth $3,280.16 from his uncle. The annuity will pay him five equal payments of $800 at the end of each year. The annuity fund is offering a return of . Ryan’s friend, Sebastian, wants to go to business school. While his father will share some of the expenses, Sebastian still needs to put in the rest on his own. But Sebastian has no money saved for it yet. According to his calculations, it will cost him $30,044 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4,200 at the end of every year in a mutual fund, from which he expects to earn a fixed 7% rate of return. It will take approximately for Sebastian to save enough money to go to business school.Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry. Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum. Required: How would you define the amount of $30 000 and $150 000 in terms of the time value of money? ANSWER a (i): (answer box will enlarge as you enter your response) How long will she have to wait until she reaches the goal of $150 000? ANSWER a (ii): Mark will receive $13,500 from his parent at the end of each year for five years. He plans to invest them in a financial asset with an interest rate of 7.5%. How much money…