The amount that couple should begin depositing annually

Assignment Help Financial Management

Reference no: EM131300356

1) Jack and Jill have just had their first child. If college is expected to cost $170,000 per year in 18 years, how much should the couple begin depositing annually at the end of each year to accumulate enough funds to pay the first? year's tuition at the beginning of the 19th? year? Assume that they can earn an annual rate of return of 7% on their investment.

The amount that the couple should begin depositing annually at the end of each year is?

2) If Bob and Judy combine their savings of $1700 and $700 ?respectively, and deposit this amount into an account that pays 2% annual interest compounded? monthly, what will the account balance be after 11 years?

The account balance in 11 years will be?

Reference no: EM131300356

Questions Cloud

Performing budgeting-the internal auditor discover : What problems will the internal auditor discover? How will the hospital address these problems? What can the hospital do to process bills in a timely manner? Are you the sole reason for the late billing? Who else should be held accountable? Are patie..

Advantage of trading through an export agent : Which of the following is true of export agents? In international business, an advantage of trading through an export agent instead of directly is that the company does not have to deal with: Which of the following is an example of a global strategy?

Investments from a strict economic point : Gabrielle just won ?$22 million in the state lottery. She is given the option of receiving a total of $1,000,000 now, or she can elect to be paid $100,000 at the end of each of the next 20 years. If Gabrielle can earn 8% annually on her? investments ..

What is the future worth : What is the future worth (in Year 8) of $20,000 deposited at the end of Year 3 plus $20,000 deposited at the end of Year 5, and $20,000 deposited at the end of Year 8 at an interest rate of 6% per year

The amount that couple should begin depositing annually : Jack and Jill have just had their first child. If college is expected to cost $170,000 per year in 18 years, how much should the couple begin depositing annually at the end of each year to accumulate enough funds to pay the first? year's tuition at t..

Foresee needing funds for your focus small business : Your focus small business requires an infusion of $100,000 in capital. Given all the financing options we have explored (debt and equity), For what purpose can you foresee needing funds for your focus small business? Note: If your business is very sm..

Recreate the real case-shiller index : Recreate the real Case-Shiller index for the Los Angeles by similarly obtaining the necessary data from a web-search (Standard and Poor’s). Note that the index you download will be a nominal index. Show both the nominal and real indexes on one plot, ..

What is default risk premium on corporate bonds : Default Risk Premium A company's 5-year bonds are yielding 9.85% per year. Treasury bonds with the same maturity are yielding 5.7% per year, and the real risk-free rate (r*) is 2.35%. The average inflation premium is 2.95%, and the maturity risk prem..

Calculate the yield using a geometric average : Expectations Theory Interest rates on 4-year Treasury securities are currently 5.8%, while 6-year Treasury securities yield 7.65%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 year..

User Account

All Pages