Question

In: Advanced Math

A newborn baby receives $2,000 on her birthday from her parents which is deposited into an...

A newborn baby receives $2,000 on her birthday from her parents which is deposited into an account and invested in the Vanguard S&P 500 Index Fund. That is $2,000 deposited at t=0.

Assume that on every subsequent birthday up to and including her 16th birthday, the baby's parents deposit an additional $1,000 into the same account and invest the money in the Vanguard S&P 500 Index Fund. That is $1,000 deposited on each of t=1 through t=16. There are no more contributions.

Assume the investments in the Vanguard S&P 500 Index Fund grow at 6% every year after all taxes and expenses. What will be the balance in the account at the baby's 65th birthday, rounded to whole dollars?

Solutions

Expert Solution


Related Solutions

On Lorenzo’s first birthday, his parents deposited $5,500 into asavings account that earns a fixed...
On Lorenzo’s first birthday, his parents deposited $5,500 into a savings account that earns a fixed rate of 5.50% and compounds interest annually. How much money will Lorenzo’s account have accumulated by his 18th birthday? (Hint: Round your answer to the nearest dollar.)$8,441$55,000$14,418$13,666What-If Scenario 1What would have been the balance in Lorenzo’s account if his parents had waited until his 10th birthday to make their initial deposit into the same account?$13,666$55,000$14,418$8,441What-If Scenario 2If Lorenzo’s parents wanted to accumulate an account...
On Hubert’s first birthday, his parents deposited $12,000 into a savings account that earns a fixed...
On Hubert’s first birthday, his parents deposited $12,000 into a savings account that earns a fixed rate of 8.50% and compounds interest annually. How much money will Hubert’s account have accumulated by his 21st birthday? (Hint: Round your answer to the nearest dollar.) $29,438 $61,344 $66,559 $120,000 What-If Scenario 1 What would have been the balance in Hubert’s account if his parents had waited until his 10th birthday to make their initial deposit into the same account? $66,559 $120,000 $61,344...
After receiving an inheritance of $30,000 on her 21st birthday, Julia deposited the inheritance in a...
After receiving an inheritance of $30,000 on her 21st birthday, Julia deposited the inheritance in a savings account with an effective annual interest rate of 6%. She decided to make regular deposits, beginning with $1,000 on her 22nd birthday, and increasing by $250 each year (that is, $1,250 on her 23rd birthday, $1,500 on her 24th birthday, etc.) What is the future worth of Julia’s deposits on her 58th birthday?
Today is your cousin’s 12th birthday. Her parents are preparingto save for her college tuition....
Today is your cousin’s 12th birthday. Her parents are preparing to save for her college tuition. They decide that they will save the equal amount of $10,000 into a savings account, starting today and continuing every birthday up to and including her 20th birthday. Assume the savings account pays 7% interest compounded annually. If instead they gave a lump-sum amount TODAY, how much money will your cousin’s parents need to deposit in the account to give her to give the...
Jane is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less)...
Jane is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less) towards her college fund into an account that will grow at a constant rate of 4.5% a year. Both parents work for the same company that offered to match parental contributions dollar for dollar for the first 5 parental deposits and 30 cents for every parental dollar for subsequent parental deposits, until Jane reaches 19. Once she reaches 19, both the company and parents...
Iri is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less)...
Iri is a newborn. Her parents are planning to contribute $4,000 a year (or possibly less) towards her college fund into an account that will grow at a constant rate of 4.5% a year. Both parents work for the same company that offered to match parental contributions dollar for dollar for the first 5 parental deposits and 30 cents for every parental dollar for subsequent parental deposits until Iri reaches 19. Once she reaches 19, both the company and parents...
An infant receives her first dose of an oral vaccine.  The nurse explains to her parents that...
An infant receives her first dose of an oral vaccine.  The nurse explains to her parents that the vaccine is a weaken virus.  What type of immunity is being conferred on the infant?  What type of immunity did the infant from her mother in utero and when she was breast fed by her mother?  What classes of antibodies were given to her by her mother?
Read the posted articles about Baby Storm and the parents' decision to raise her without a...
Read the posted articles about Baby Storm and the parents' decision to raise her without a gender. Given what you have learned about biological, social, and cognitive influences on gender development, is raising a gender-neutral child possible? Or desirable? Or perhaps even harmful? Be sure you explain your argument!
Katie is a 7-month-old baby girl, the second child born to her parents. Her mother had...
Katie is a 7-month-old baby girl, the second child born to her parents. Her mother had a healthy, full-term pregnancy, and Nona’s birth weight was normal. She did not respond well to breastfeeding and was changed entirely to a formula based on cow’s milk at 4 weeks. Between 7 and 12 weeks of age, she was admitted to the hospital twice with a history of screaming after feeding, but was discharged after observation without a specific diagnosis. Elimination of cow’s...
Read the posted articles below about Baby Storm and the parents' decision to raise her without...
Read the posted articles below about Baby Storm and the parents' decision to raise her without a gender. Given what you have learned about biological, social, and cognitive influences on gender development, is raising a gender-neutral child possible? Or desirable? Or perhaps even harmful? Be sure you explain your argument! http://www.huffingtonpost.ca/2016/06/30/baby-storm-gender_n_10756806.html http://www.thestar.com/life/parent/2013/11/15/remember_storm_we_check_in_on_the_baby_being_raised_genderneutral.html PLEASE DO NOT COPY FROM THE INTERNET
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT