Part A Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the child turns 17. Ruby expects that tuition at that point in time will be $15,000 per year. Ruby expects her child to attend university for a period of 4 consecutive years. a) Explain using the above scenario whether Ruby's goal is a "SMART" goal b) Determine the amount of money that Ruby must have accumulated in her investment account in 17 years in order to fund her child's education for a period of 4 years. Assume withdrawals for the tuition are made annually. Remaining funds in the education savings account will eam 4% interest compounded quarterly. c) If Ruby can invest in an education savings account which pays 5% interest compounded quarterly for her child, how much does she need to start saving each month once the baby is born? Assume deposits are made at the end of each month. Below is the monthly Part A: Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the child turns 17. Ruby expects that tuition at that point in time will be $15,000 per year. Ruby expects her child to attend university for a period of 4 consecutive years. a) Explain using the above scenario whether Ruby's goal is a "SMART" goal. b) Determine the amount of money that Ruby must have accumulated in her investment account in 17 years in order to fund her child's education for a period of 4 years. Assume withdrawals for the tuition are made annually. Remaining funds in the education savings account will earn 4% interest compounded quarterly. c) If Ruby can invest in an education savings account which pays 5% interest compounded quarterly for her child, how much does she need to start saving each month once the baby is born? Assume deposits are made at the end of each month. Below is the monthly fire wSaved this P Searth (ARQ Malings Review View Help less anu need to see w nale Lifting Part A: Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the child turns 17. Ruby expects that tuition at that point in time will be $15,000 per year. Buby expects her child to attend university for a period of 4 consecutive years. a) Explain using the above scenario whether Ruby's goal is a "SMART" goal. b) Determine the amount of money that Ruby must have accumulated in her investment account in 17 years in order to fund her child's education for a period of 4 years. Assume withdrawals for the tuition are made annually. Remaining funds in the education savings account will earn 4% interest compounded quarterly. c) If Ruby can invest in an education savings account which pays 5% interest compounded quarterly for her child, how much does she need to start saving each month once the baby is born? Assume deposits are made at the end of each month. Home End O 4 R C F % 5 T G 1 H 37 U 00 8 9 O ( Part A Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the child turns 17. Ruby expects that tuition at that point in time will be $15,000 per year. Ruby expects her child to attend university for a period of 4 consecutive years. a) Explain using the above scenario whether Ruby's goal is a "SMART" goal b) Determine the amount of money that Ruby must have accumulated in her investment account in 17 years in order to fund her child's education for a period of 4 years. Assume withdrawals for the tuition are made annually. Remaining funds in the education savings account will eam 4% interest compounded quarterly. c) If Ruby can invest in an education savings account which pays 5% interest compounded quarterly for her child, how much does she need to start saving each month once the baby is born? Assume deposits are made at the end of each month. Below is the monthly Part A: Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the child turns 17. Ruby expects that tuition at that point in time will be $15,000 per year. Ruby expects her child to attend university for a period of 4 consecutive years. a) Explain using the above scenario whether Ruby's goal is a "SMART" goal. b) Determine the amount of money that Ruby must have accumulated in her investment account in 17 years in order to fund her child's education for a period of 4 years. Assume withdrawals for the tuition are made annually. Remaining funds in the education savings account will earn 4% interest compounded quarterly. c) If Ruby can invest in an education savings account which pays 5% interest compounded quarterly for her child, how much does she need to start saving each month once the baby is born? Assume deposits are made at the end of each month. Below is the monthly fire wSaved this P Searth (ARQ Malings Review View Help less anu need to see w nale Lifting Part A: Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the child turns 17. Ruby expects that tuition at that point in time will be $15,000 per year. Buby expects her child to attend university for a period of 4 consecutive years. a) Explain using the above scenario whether Ruby's goal is a "SMART" goal. b) Determine the amount of money that Ruby must have accumulated in her investment account in 17 years in order to fund her child's education for a period of 4 years. Assume withdrawals for the tuition are made annually. Remaining funds in the education savings account will earn 4% interest compounded quarterly. c) If Ruby can invest in an education savings account which pays 5% interest compounded quarterly for her child, how much does she need to start saving each month once the baby is born? Assume deposits are made at the end of each month. Home End O 4 R C F % 5 T G 1 H 37 U 00 8 9 O (
