Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume that your parents wanted to have $150,000 saved for college by your 18 th birthday and they started saving on your first birthday. They
Assume that your parents wanted to have $150,000 saved for college by your 18 th birthday and they started saving on your first birthday. They saved the same amount e and earned 9.5% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $190,000 saved just in case, how much would they have to save each year to reach a. How much would they have to save each year to reach their goal? To reach the goal of $150,000, the amount they have to save each year is $ (Round to the nearest cent.) You have an investment account that started with $1,00010 years ago and which now has grown to $10,000. a. What annual rate of return have you earned (you have made no additional contributions to the account)? b. If the savings bond earns 16% per year from now on, what will the account's value be 10 years from now? a. What annual rate of return have you earned (you have made no additional contributions to the account)? Your annual rate of return is \%. (Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started