Your cousin is currently 12 years old. She will be going to college in 6 years. Your
Question:
Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4% per year, how much money do they need to put into the account today to ensure that they will have $100,000 in 6 years?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 43% (16 reviews)
Plan What your aunt and uncle want to know is what is the p...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
How much money do people spend on graduation gifts? In 2007, the National Retail Federation (www.nrf.com) surveyed 2815 consumers who reported that they bought one or more graduation gifts that year....
-
How much money do people spend on graduation gifts? In 2007, the National Retail Federation (www.nrf.com) surveyed 2,815 consumers who reported that they bought one or more graduation gifts that...
-
How much money do movies make on a single weekend? Does this amount in any way predict the movie's success or failure, or is the movie's total monetary success more dependent on the number of weeks...
-
The average distance between Earth and the Sun is 1.5 10 m. 1) Calculate the average speed of Earth in its orbit (assumed to be circular) in meters per second. 2) What is this speed in miles per hour?
-
American football is played on a 100-yd-long field, excluding the end zones. How long is the field in meters? (Assume that 1 meter equals 3.281 feet.)
-
According to the information presented in the passage, what would likely have happened if the iron lung had not been invented? A. Some polio patients would have perished more quickly. B. Paralysis in...
-
P2-9 Prepare allocation schedules under different stock price assumptions (bargain purchase) Pop Corporation exchanged 40,000 previously unissued no par common shares for a 40 percent interest in Son...
-
Thibodeau Company has the following merchandise account balances: Sales Revenue $195,000, Sales Discounts $2,000, Cost of Goods Sold $117,000, and Inventory $40,000. Prepare the entries to record the...
-
Dynamic Systems has an outstanding bond that has a $1,000 par value and a 7 percent coupon rate. Interest is paid semiannually . The bond has 12 years remaining until it matures. Today the going...
-
Katie is a trader. On 1 October 204 she had the following balances in her ledger: $ Capital .................................................. 15000 Inventory...
-
Your brother has offered to give you either $5000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable?
-
Your mom is thinking of retiring. Her retirement plan will pay her either $250,000 immediately on retirement or $350,000 five years after the date of her retirement. Which alternative should she...
-
What is a cost driver? (Section 9.4.2)
-
Outlines help in several ways: They help organize your thoughts so your speech is easy to follow. They keep you on track so you don't research beyond the scope of your speech. They give you a clear...
-
As a nurse leader you have to be able to have the willingness to be in a place of flexibility for change. Sometimes change can cause stress that can cloud our thoughts and ability to connect. Share a...
-
find T(625). I Given the recurrence relation T(n)=7T (n/5)+ 10n for n > 1 T (1)=1 Answer: (please write your answer here, add required space if needed)
-
2. (10 pts) The following program has many compilation errors. Underline each of the compilation errors, then rewrite each statement (even the correct ones) so that all these errors are fixed. Do not...
-
In this problem you will implement a variant of the List ADT. In particular you will implement the String-List ADT, in a concrete class called SListArray, based on the provided abstract Slist class....
-
Xr11-31 A random sample of 12 second-year university students enrolled in a business statistics course was drawn. At the courses completion, each student was asked how many hours he or she spent...
-
6 (a) Briefly develop a mathematical model of the behaviour of a copper-twisted pair cable (b) Derive the magnetic energy from: w given that: K + w, where the - - k symbols have their usual meaning...
-
Initially an ideal gas at 412 K occupies 12.62 L at 0.6789 atm. The gas is allowed to expand to 19.44 L by two pathways: (a) Isothermal, reversible expansion and (b) Isothermal, irreversible free...
-
Costs and the BAT Model Debit and credit bookkeepers needs a total of $7,000 in cash during the year for transactions and other purposes. Whenever cash runs low, it sells $450 in securities and...
-
Determining Optimal Cash Balances the all day Company is currently holding $670,000 in cash. It projects that over the next year its cash outflows will exceed cash inflows by $125,000 per month. How...
-
Interpreting Miller-Orr Econoline Crush, Inc., uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000 and a target balance of $75,000. Explain what each...
-
A government bond matures in 30 years, makes semi-annual coupon payments of 6.0% ($120 per year) and offers a yield of 3.7% annually compounded. Assume face value is $1,000. Three years later the...
-
Your objective is: 1. Carry out a life insurance needs analysis, for each one of them (show your calculations) [30 Marks] 2. Refer to the case and the insurance plan quotes. Would you recommend...
-
TufStuff, Incorporated, sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the company s products is a heavy - duty corrosion - resistant...
Study smarter with the SolutionInn App