Question

As a savings plan to guarantee their child's college education, a couple decides to deposit $ 100 a month into a bank account that pays interest at a rate of 6% per year compounded monthly. If the savings plan started when the child was 6 years old, how much money will he have accumulated when he turns 18?

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Answer #1

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**ASSUME THAT IT IS ORDINARY
ANNUITY, MONEY DEPOSITED AT THE END OF EACH
MONTH**

In order to have money for their son's college education, a
young couple started a savings plan into which they made
intermittent deposits. They started the account with a deposit of
$2,000 (in year zero) and then added $3,000 in years two, five and
six. The amount they had in the account in year ten if they earned
interest at 12% per year was nearest to:

You plan to start saving for your son's college education. He
will begin collage when he turns 18 years old and will need $4,000
at that time and in each of the following three years. You will
make a deposit at the end of this year in an account that pays 6%
compounded annually as well as an identical deposit at the end of
each year, with the last deposit occurring when he turns 18. If an
annual deposit of...

A couple wishes to establish a college fund at a bank for their
seven-years-old child. The college fund will earn 10% interest
compounded monthly. Assuming that the child enters university at
age 18, the family estimates that amount of SR18,000 per year, in
terms of today's dollars will be required to support the child's
university expenses for four years. College expenses are estimated
to increase at an annual rate of 9%. Determine the equal monthly
deposit amounts the family must...

1. What is the number, n, of periods? To prepare for their
children’s future college expenses, a couple decides to deposit
$100 at the end of every month into an account that pays 8%
interest compounded monthly. How much will be accumulated after 18
years?
a.
n = 6
b.
n = 12
c.
n = 18
d.
n = 216
2. Ordinary Annuity or Annuity Due? A newly married couple
decides to save $1500 per month for the purchase...

Your child is currently 2 years old. You plan to save for your
child’s college education expenses by depositing 5% of your annual
salary into an account that pays 6% interest compounded annually.
If your salary is $100,000 next year when you make the first
deposit, and you expect your salary to grow at 4% a year after
that. How much do you have saved in 16 years when your child goes
to college?

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...

A careful father decides to deposit $67.00 every month to fund
his daughter’s college education. He deposits the money in a fund
that pays 4.44% APR. His first deposit will be in one month, and
his daughter will start college in 12.00 years. How much money will
he have saved for his daughter at the end of the 12.00th year?

A careful father decides to deposit $144.00 every month to fund
his daughter’s college education. He deposits the money in a fund
that pays 6.12% APR. His first deposit will be in one month, and
his daughter will start college in 14.00 years. How much money will
he have saved for his daughter at the end of the 14.00th year?

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...

A young couple have decided to make advance plans for financing
their 3-year-old son’s college education. Money can be deposited at
7% compounded annually. What annual deposit on each birthday from
the 4Th to the 15Th inclusive must be made to provide $30,000 on
each birthday from the 18Th to the 21st inclusive? If the annual
deposit is 5000, what remains in the account after the last
withdrawal?

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