Plan to make third first deposit

Assignment Help Business Economics

Reference no: EM13739529

Grandparents decided to start a college fund for their soon to be born granddaughter. They plan to make third first deposit the day she is born and plan to make the last deposit on her 10th birthday. They want the child to be able to withdraw 10,000 per year for four years, beginning on her 18th birthday. if the interest rate is 8% compounded annually, how large should their deposits be?

Reference no: EM13739529

Questions Cloud

Describe three motivation theories : Evaluate three (3) factors that influence employee motivation and provide one (1) original example of each. Describe three (3) motivation theories, provide one (1) original example that illustrates each.

Explain the events leading to the louisiana purchase : Describe the events leading to the Louisiana Purchase. What objections did Jefferson hold and how did he reconcile these? What ramifications did this purchase hold for the new nation?

What are five factors that influence comparative advantage : What are the five factors that influence comparative advantage? How can the government use different fiscal policies to [a] lower unemployment and [b] reduce inflation?

What is the annual effective interest rate : Benny decides to buy living room furniture worth $3000. He plans to finance the furniture for two years. The furniture store tells him that the interest rate is only 1%/mo/mo and his monthly payment is computed as follows:

Plan to make third first deposit : Grandparents decided to start a college fund for their soon to be born granddaughter. They plan to make third first deposit the day she is born and plan to make the last deposit on her 10th birthday. They want the child to be able to withdraw 10,000 ..

Later adulthood scenarios : The aging process affects us all. Sooner or later, we will be faced with challenges unique to later life. As medical technology pushes the outer boundaries of longevity, we will be confronted with more and more issues related to aging in later lif..

What caused many nations to abandon the gold standard : What caused many nations to abandon the gold standard by the end of WWI? What were the consequences of that action?

Proceeded into a slow-growth recovery : The U.S. economy fell into a recession in 2001 and then proceeded into a slow-growth recovery due to a decline in investment. Show how a change in investment can have a big impact on GDP causing a national recession. Illustrate by showing what it loo..

What is effective rate of protection for steel industry : Suppose that it take $100,000 of steel to produce $2,000,000 of cars. If the nominal tariff on steel is 10% for the steel and 20%for cars, what is the effective rate of protection for the steel industry?

User Account

All Pages