Question

You have been accepted at University. You will need $15,000 every six months (beginning six months from now) for the next three years to cover tuition and living expenses. Mom and Dad have agreed to pay for your education. They want to make one deposit now in a bank account earning 6% interest, compounded semiannually, so that you can withdraw $15,000 every six months for the next three years. How much must they deposit now?

Answer #1

For this , we need to calculate the present value of the
payments.

You
have been accepted into college. The college guarantees that your
tuition will not increase for the four years you attend college.
The first $10,000 tuition payment is due in six months. After that,
the same payment is due every six months until you have made a
total of eight payments. The college offers a bank account that
allows you to withdraw money every six months and has a fixed APR
of 3.9% (with semiannual compounding) guaranteed to remain the...

Julian has been investing $1500 at the beginning of every six
months for a long time and earning 11% compounded semiannually. His
investments have now accumulated to $766,715. How long ago did he
make the first $1500 payment?

You have been accepted into college. The college guarantees that
your tuition will not increase for the four years you attend
college. The first $ 10 comma 800 tuition payment is due in six
months. After that, the same payment is due every six months until
you have made a total of eight payments. The college offers a bank
account that allows you to withdraw money every six months and has
a fixed APR of 4.5 % (with semiannual compounding)...

Ken and Belinda have a five-year-old daughter. At the end of
every six months for the next 121/2 years, they wish to
contribute equal amounts to a Registered Education Savings Plan
(RESP). Six months after the last RESP contribution, the first of
12 semiannual withdrawals of $6300 will be made. If the RESP earns
9.8% compounded semiannually, what must be the size of their
regular RESP contributions?

An individual wishes to deposit an amount of money now and $100
every six months so that at the end of five years $1,650 will have
been accumulated. With interest at 4% per year,
compounded semiannually, how much should be deposited now?
A.
$455.35
B.
$510.95
C.
$332.24
D. $284.51
Answer:_________________
Show work

Payments of $715 will be deposited every six months,
beginning now. If money can earn 4.2% compounded semiannually,
determine the balance at the end of seven years. ($2873.31) Cannot
use Excel.

During a three year period when your income was high you were
able to deposit $1200 at the end of each month in an account
earning 12% compounded monthly.Your income went down and you could
not continue the deposits. Moreover, the interest rate on your
accumulated deposits fell to 8% compounded quarterly and remained
at this rate for 14 years, at which time you decided to exhaust the
account by withdrawing equal amounts at the end of every six months...

Mr. Clark makes a deposit at the beginning of every three months
into a savings account that earns interest at 4.6% compounded
quarterly. He saves for six years, then converts his savings into
an annuity that pays him $650 at the beginning of every three
months for ten years. What is the size of the deposit he makes
while he is saving?

1. Ruth is planning for her son’s university education
to begin 17 years from now. She estimates the yearly tuition,
textbooks and living allowances to be approximately GHC25,000 per
year for a four year degree.
(a) How much would she have to deposit today at an
interest rate of 8 percent for her son to be able to withdraw
GHC25,000 per year for four years?
(b) If Ruth decided to put an equal amount in a fixed
deposit account at...

Beginning three months from now, you want to be able to withdraw
$3,300 each quarter from your bank account to cover college
expenses over the next four years.
If the account pays .73 percent interest per quarter, how much do
you need to have in your bank account today to meet your expense
needs over the next four years? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Amount needed
$

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