Question

Danny Metzger's parents invested $1500 when he was born. This money is to be used for...

Danny Metzger's parents invested $1500 when he was born. This money is to be used for Danny's college education and is to be withdrawn in four equal annual payments beginning when Danny is age 19. Find the amount that will be available each year, if money is worth 6%, compounded annually.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. A personal account earmarked as a retirement supplement contains $342,100. Suppose $300,000 is used to...
1. A personal account earmarked as a retirement supplement contains $342,100. Suppose $300,000 is used to establish an annuity that earns 5%, compounded quarterly, and pays $5000 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.) 2. Find the present value of an annuity due that pays $4000 at the beginning of each quarter for the next 9 years. Assume that money is worth...
If two parents start a college fund when their child is born and they decide to...
If two parents start a college fund when their child is born and they decide to invest $200 each month that will pay 6.25% APR compounded monthly, how much money will be accumulated? a) Suppose the annual cost of a college education right now is $5000. Assume a 2% inflation rate continues for the next 18 year. Will the parents have saved enough money for their child to go to college without receiving financial aid? Why/ Why not?
Nico is saving money for his college education. He invests some money at 9?%, and ?$1500...
Nico is saving money for his college education. He invests some money at 9?%, and ?$1500 less than that amount at 6 %. The investments produced a total of ?$225 interest in 1 yr. How much did he invest at each? rate? He invested ?$(blank) nothing at 9?% and ?(blank) nothing at 6?%.
Yumi's grandparents presented her with a gift of $17,000 when she was 10 years old to...
Yumi's grandparents presented her with a gift of $17,000 when she was 10 years old to be used for her college education. Over the next 7 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 2.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is...
Yumi's grandparents presented her with a gift of $22,000 when she was 9 years old to...
Yumi's grandparents presented her with a gift of $22,000 when she was 9 years old to be used for her college education. Over the next 8 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 4.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is...
Please demonstrate !! 1. Your parents start saving for your sister's college education. She will begin...
Please demonstrate !! 1. Your parents start saving for your sister's college education. She will begin college when she turns age 18 and will need $4,000 at that time and at the end of each of the following 3 years. They will make a deposit at the end of this year in an account that pays 6% compounded annually, and an identical deposit at the end of each year with the last deposit occurring when she turns age 18. If...
The Thompson's want to send their two (2) year old son Johnny to College when he...
The Thompson's want to send their two (2) year old son Johnny to College when he reaches the age of eighteen (18). They plan a four (4) year education program at a local college, where annual tuition is currently $9,000 Annually. They assume that college costs will increase at 5% & that they can earn 9% after-tax on their invested assets. How much do they need to set aside today to achieve this goal? a. $18,042.36 b. $17,473.55 c. $18,729.70...
A couple with a newborn daughter wants to save for their child’s college expenses in advance....
A couple with a newborn daughter wants to save for their child’s college expenses in advance. The couple can establish a college fund that pays 7% interest compounded daily. Assuming that the child enters college at age 18, the parents estimate that an amount of $22500 per year will be required to support the child’s college expenses for four years of education. Determine the equal annual amounts the couple must save until they send their child to college. Assume that...
Jeffrey invested money in a mutual fund for seven years. The interest rate on the mutual...
Jeffrey invested money in a mutual fund for seven years. The interest rate on the mutual fund was 5% compounded quarterly for the first three years and 3% compounded semi-annually for the next four years. At the end of the seven years, Jeffrey's mutual fund had accumulated to $35,198.50. a. Calculate the amount that was in the mutual fund after the first three years when the interest rate changed. Round to the nearest cent b. Calculate the amount that was...
1. Chris Spear invested $50,000 today in a fund that earns 8% compounded semiannually. To what...
1. Chris Spear invested $50,000 today in a fund that earns 8% compounded semiannually. To what amount will the investment grow in 3 years? 2. Sally Medavoy will invest $10,000 a year for 3 years in a fund that will earn 6% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 3 years? 3. John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT