Question

to establish a trustfund of 120,000$, 3 years from now at an interest rate of 20%...

to establish a trustfund of 120,000$, 3 years from now at an interest rate of 20% compounded quarterly. how much money would i have to set aside now?
A.) 120,000(1.05)^-12
B.) 120,000(1.2)^-12
C.)120,000(1.05)^-60
D.)120,000(1.2)^-60
E.)120,000e^-0.6

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
The Pirerras are planning to go to Europe 4 years from now and have agreed to...
The Pirerras are planning to go to Europe 4 years from now and have agreed to set aside $170/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 2%/year compounded monthly, how much money will be in their travel fund at the end of the fourth year? (Round your answer to the nearest cent.) $
The average cost of a 4-year college education is projected to be $120,000 in 16 years....
The average cost of a 4-year college education is projected to be $120,000 in 16 years. How much money should be invested now at 6%, compounded quarterly, to provide $120,000 in 16 years?
Starr Company decides to establish a fund that it will use 1 year from now to...
Starr Company decides to establish a fund that it will use 1 year from now to replace an aging production facility. The company will make a $94,000 initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 4%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final...
Question No : 3 If you deposit 10 $ in an account, that pays 5% interest,...
Question No : 3 If you deposit 10 $ in an account, that pays 5% interest, compounded annually, how much you will have at the end of 10 years? 50 years and 100 years How much will be in account at the end of 5 years the amount deposited today is 10,000 and interest is 8% per year, compounded semiannually? How much would I have to deposit in an account today that pays 12% interest, compounded quarterly, so that I...
You would like to give your daughter $75,000 towards her college education 20 years from now....
You would like to give your daughter $75,000 towards her college education 20 years from now. How much money must you set aside today for this purpose if you can earn 8 percent on your investments? Round the answer to two decimal places.
1) Consider a $126,714 35-year mortgage with an interest rate of 8% compounded monthly. a) Calculate...
1) Consider a $126,714 35-year mortgage with an interest rate of 8% compounded monthly. a) Calculate the monthly payment. b) How much of the principal is paid the first, 25th, and last year? c) How much interest is paid the first, 25th, and last year? d) What is the total amount of money paid during the 35 years? e)What is the total amount of interest paid during the 35 years? f) What is the unpaid balance after 25 years? g)How...
Assume that you are now 20 years old. You would like to retire at age 60...
Assume that you are now 20 years old. You would like to retire at age 60 and have a retirement fund of $6,000,000 at the time of your retirement. You have already $10,000 at age 20 in the retirement account. You expect to earn 6% per year. The amount of money you must set aside each month to reach your retirement goal is: A. $2500.00 B. $3067.84 C. $4,377.98 D. $3500.00
Assume that you are now 20 years old. You would like to retire at age 60...
Assume that you are now 20 years old. You would like to retire at age 60 and have a retirement fund of $6,000,000 at the time of your retirement. You have already $10,000 at age 20 in the retirement account. You expect to earn 6% per year. The amount of money you must set aside each month to reach your retirement goal is ?
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly. How much will be the total you have at the end of the time? 2. How much money will you have to deposit now if you wish to have $5,000 at the end of 8 years. Interest is to be at the rate of 6% compounded semiannually? 3. In the California “Million Dollar Lottery” a winner is paid...
If you deposit $10000 each year for 10 years starting 3 years from now, how much...
If you deposit $10000 each year for 10 years starting 3 years from now, how much equal amounts of money will have to be withdrawn 20 and 25 years from now in order to deplete the account? Use an interest rate of 10% per year.