Question

15 years from now, your 2-year old son will be attending Harvard. You have determined he will need $85,000 per year for tuition and living expenses. In 15 years, you will give him a lump sum payment for the entire amount he will need, assuming that he will be able to invest the money not yet needed at 4.5% interest. You have found an investment opportunity that will yield an annual return of 6.5% on your monthly payments. How much will you have to invest each month to give your son the money he needs for his education (assume his first year at Harvard is Year 0, and his final year is Year 3)? Please use excel formulas and show work! Thanks.

Answer #1

15 years from now, your 2-year old son will be attending
Harvard. You have determined he will need $85,000 per year for
tuition and living expenses. In 15 years, you will give him a lump
sum payment for the entire amount he will need, assuming that he
will be able to invest the money not yet needed at 4.5% interest.
You have found an investment opportunity that will yield an annual
return of 6.5% on your monthly payments. How much...

15 years from now, your 2-year old son will be attending
Harvard. You have determined he will need $85,000 per year for
tuition and living expenses. In 15 years, you will give him a lump
sum payment for the entire amount he will need, assuming that he
will be able to invest the money not yet needed at 4.5% interest.
You have found an investment opportunity that will yield an annual
return of 6.5% on your monthly payments. How much...

15 years from now, your 2-year old son will be attending
Harvard. You have determined he will need $70,000 per year for
tuition and living expenses. In 15 years, you will give him a lump
sum payment for the entire amount he will need, assuming that he
will be able to invest the money not yet needed at 5% interest. You
have found an investment opportunity that will yield an annual
return of 7% on your monthly payments. How much...

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Michelle wishes to establish a university fund for her son who
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Required:
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Assuming that the interest over the three years while her son is at
university is 6%p.a. compounded monthly and he is paid the $900...

Michelle wishes to establish a university fund for her son who
is currently 8 years old.
Required:
a. If her son will need a monthly income of
$900, how much does he need to be in place at the start of his
university life (ie start of first-year) so that the $900 per month
is achievable? Assuming that the interest over the three
years while her son is at university is 6%p.a. compounded
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You have your choice of two investment accounts. investment a is
a 15-year annuity that features end-of-month 1175 payments and has
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now?

3-part question. Five years from now you would like to have $25,000
for a down payment on a home. Assuming you could earn 9% interest,
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What is the present value of $200 to be received two years from
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Q1-You have decided to start saving money for your future. What
is the future value of a 14-year annuity of $2,200 per year,
assuming that you make your first payment today and the interest
rate is 12 percent? (Enter your answer as a positive number rounded
to 2 decimal places.)
Q2-You need to have $24,856 available at the end of 9 years. How
much to do you have invest each year, starting at the end of this
year, for 9...

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