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Hello Can you help me solve these questions with working and explaination? 7) You believe in the power of compounding and decide to save Sl
Hello Can you help me solve these questions with working and explaination?
7) You believe in the power of compounding and decide to save Sl per day by avoiding the purchase of a soda. You deposit the Sl at the end of each day in a bank account that pays 8% interest compounded daily. You are going to take a trip in 20 years with the money you have accumulated. How much money will you have in 20 years, assuming 365 days per year? (FVA, S18,032 the answer will be a bit different if the student round off the figure differently) 8) 9) 10) Your son will be attending an expensive university in 12 years. You deposit S5,000 per year for 12 years, at the beginning of today's period. How much money will be in the college fund 12 years from now if the fund earns 8% per year? (FVA,S102,476.48) John has obtained a grant of S600,000 for research at his university. He to make equal withdrawals at the end of each year for 4 years to pay the research assistants, secretaries and for other expenses. If he places the cash in an account which pays 10% interest compounded annually, how much must each withdrawal be so that no cash is left at the end of the fourth year? (PVA, John and Mary are expecting to build a S250,OOO nest egg to use to travel the world upon retirement. They would like to know how much they need to set annually to reach this goal. John indicates that they will retire 20 years from today while Mary thinks that a 6% rate of return is appropriate for their risk level. Calculate how much they need to set annually if they want to save at the beginning of each year. (EVA,
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