Question
In: Advanced Math
1.A couple just had a baby. How much should they invest now 5.9%compounded daily in order...
1.A couple just had a baby. How much should they invest now 5.9%compounded daily in order to have $45,000 for the child's education 18 years from now? Compute the answer to the nearest dollar. (Assume a 365-day year.)
2.Find the value $20,000 at the end of one year if it is invested in an account that has an interest rate of 5.40% and is compounded in accordance with the rules below.
a. compounded monthly
b.compounded daily (assuming a 365-day year)
c.compounded quarterly
Solutions
Colby Messinger answered 1 year agoRelated Solutions
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Suppose that a young couple has just had their first baby and they wish to ensure...
Suppose that a young
couple has just had their first baby and they wish to ensure that
enough money will be available to pay for their child's college
education. They decide to make deposits into an educational savings
account on each of their daughter's birthdays, starting with her
first birthday. Assume that the educational savings account will
return a constant 7%. The parents deposit $2000 on their daughter's
first birthday and plan to increase the size of their deposits by...
Suppose that a young couple has just had their first baby and they wish to insure...
Suppose that a young couple has just had their first baby and
they wish to insure that enough money will be available to pay for
their child's college education. They decide to make deposits into
an educational savings account on each of their daughter's
birthdays, starting with her first birthday. Assume that the
educational savings account will return a constant 9%. The parents
deposit $2400 on their daughter's first birthday and plan to
increase the size of their deposits by...
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tuition and other costs have historically increased at a rate of 4%
per year.
Assuming that college costs continue to increase an average of
4% per year and that all her college savings are invested in an...
Suppose that a young couple has just had their first baby and they wish to insure...
Suppose that a young couple has just had their first baby and
they wish to insure that enough money will be available to pay for
their child's college education. They decide to make deposits into
an educational savings account on each of their daughter's
birthdays, starting with her first birthday. Assume that the
educational savings account will return a constant 7%. The parents
deposit $2000 on their daughter's first birthday and plan to
increase the size of their deposits by...
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Round to the nearest cent
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$
How much interest will you earn?
$
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$
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