Question

Christina plans to contribute RM1,200 a year to her niece’s college education. Her niece will graduate...

Christina plans to contribute RM1,200 a year to her niece’s college education. Her
niece will graduate from high school in 10 years. If the interest rate is 6%, how
much money does Christina need to save for her by the time she graduates from
high school?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer: RM 15,817

EXPLANATION

Christina plan to contribute RM 1,200 a year to her niece's college education

Her niece will graduate from high school in 10 years

Interest rate is 6 %

Christina need to save for her=

1200(1+0.06)^9+1200(1+0.06)^8+1200(1+0.06)^7+1200(1+0.06)^6+1200(1+0.06)^5+1200(1+0.06)^4+1200(1+0.06)^3+1200(1+0.06)^2+1200(1+0.06)^1+1200(1+0.06)^0

= 2027.32+1912.62+1804.36+1702.22+1605.87+1514.97+1429.22+1348.32+1272+1200

=RM 15,816.95

=RM 15,817 approx

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Christina plans to contribute RM1,200 a year to her niece’s college education. Her niece will graduate...
Christina plans to contribute RM1,200 a year to her niece’s college education. Her niece will graduate from high school in 10 years. If the interest rate is 6%, how much money does Christina need to save for her by the time she graduates from high school?
A college is interested in if the year of receiving high-level education (college and above) influences...
A college is interested in if the year of receiving high-level education (college and above) influences students’ salaries when they join the working field. The college randomly selected 4 students who recently received a full- time work offer and collected their year of receiving high-level education and salary per week. The raw data is: Participant Year of high-level education Salary per week Participant 1 4 1150 Participant 2 5 1300 Participant 3 7 1600 Participant 4 2 750 -Calculate the...
Suzanna plans to save for her 4-year school, which starts 6 years from now. Suzanna will...
Suzanna plans to save for her 4-year school, which starts 6 years from now. Suzanna will need to make the first payment 6 years from today. She identifies a savings plan that allows her to earn an interest of 8 percent annually. The current annual expenditure is $7,200 and it is expected to grow by 7 percent annually. How much should Suzanna deposit each year, starting one year from today? Assume that she plans to make 4 payments. PLEASE HELP
Joann wants to save for her daughter's education. Tuition costs $9,000 per year in today's dollars....
Joann wants to save for her daughter's education. Tuition costs $9,000 per year in today's dollars. Her daughter was born today and will go to school starting at age 18. She will go to school for 4 years. She can earn 12% on her investments and tuition inflation is 6%. How much must she save at the end of each year if she wants to make her last savings payment at the beginning of her daughter's first year of college?...
Jill would like to plan for her son's college education. She would like for her son,...
Jill would like to plan for her son's college education. She would like for her son, who was born today, to attend college for 5 years, beginning at age 18. Tuition is currently $12,000 per year and tuition inflation is 6%. Jill can earn an after-tax rate of return of 9%. How much must Jill save at the end of each year, if she wants to make the last payment at the beginning of her son's first year of college?...
Ashley is planning to attend college when she graduates from high school 7 years from now....
Ashley is planning to attend college when she graduates from high school 7 years from now. She anticipates that she will need $10,000 at the beginning of each of the four college years to pay for tuition and fees, and have some spending money. Ashley has made an arrangement with her father to do the household chores if her dad deposits $3,500 at the end of each year for the next 7 years in a bank account paying 8 percent...
Holly would like to plan for her daughter's college education. She would like for her daughter,...
Holly would like to plan for her daughter's college education. She would like for her daughter, who was born today, to attend college for 4 years, beginning at age 18. Tuition is currently $10,000 per year and tuition inflation is 7%. Holly can earn an after-tax rate of return of 9.5%. How much must Holly save at the end of each year, if she wants to make the last payment at the beginning of her daughter's first year of college?
Suppose that some parents begin saving for their child’s college education. They currently have 15 years...
Suppose that some parents begin saving for their child’s college education. They currently have 15 years until their child starts college. Current tuition, room, and board costs $10000 per year. Assume these costs will grow at 7% per year for the next 20 years. Also assume it will take four years to graduate. (a) Calculate the costs for tuition, room, and board for these parents’ child 16, 17, 18, and 19 years from now. (b) How much would these parents...
1a) You decided to endow a chair in finance for the Monroe College King Graduate School....
1a) You decided to endow a chair in finance for the Monroe College King Graduate School. The goal of the chair is to provide the chair holder with $125,000 of additional financial support per year forever. If the rate of interest is 4 percent, how much money will you have to give the Monroe College foundation to provide the desired level of support? 1B)You plan to save $2,000 each year for the next four years to pay for a vacation....
Jack wants to figure out how much to save for his daughter’s 4-year college education. She...
Jack wants to figure out how much to save for his daughter’s 4-year college education. She will begin college in 10 years and Jack wants her to attend his alma mater, Auburn University. Currently, Auburn costs approximately $8,000 per year for a 15-hour course load. Given inflation and typical tuition increases, Jack expects these costs to rise at a rate of 2.5% per year. How much does Jack need to save at the end of each year into an account...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT