A financial planning service offers a college savings program. The plan calls for you to make six
Question:
A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $9,000 each, with the first payment occurring today, your child's 12th birthday. Beginning on your child's 18th birthday, the plan will provide $20,000 per year for four years. What return is this investment offering?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (14 reviews)
Given data Annual payment 9000 of years ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Calculating Interest Rates a financial planning service offers a college savings program. The plan calls for you to make six annual payments of $5,000 each, with the first payment occurring today,...
-
A 10-year annual annuity due with the first payment occurring at date t = 7 has a current value of $85,000. If the discount rate is 9 percent per year, what is the annuity payment amount?
-
Felix will need $10,000 per year for four years to pay for tuition. How much will Felixs parents have to invest at the end of each year for the eight years before he begins his studies if their...
-
Describe the impact of mobile computing upon your business and project its impact in the future. Do the same for social media. In both cases, when considering impacts, consider how each technology...
-
The company acquired a machine on January 1 at an original cost of $80,000. The machines estimated residual value is $10,000, and its estimated life is 4 years. (1) Compute the annual straight-line...
-
What does Kant mean by acting out of duty? How does the shopkeeper exemplify this?
-
How may physical controls be used for these two classes of transactions?
-
Professional ethics and end-of-year actions. Janet Taylor is the new division controller of the snack-foods division of Gourmet Foods. Gourmet Foods has reported a minimum 15% growth in annual...
-
The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Feb. 8 Received 35% of the $18,100 balance owed by DeCoy Co., a bankrupt business, and...
-
You are the manager of a restaurant for a fast-food franchise. Last month, the mean waiting time at the drive-through window for branches in your geographic region, as measured from the time a...
-
You have just arranged for a $750,000 mortgage to finance the purchase of a large tract of land. The mortgage has an 8.1 percent APR, and it calls for monthly payments over the next 30 years....
-
What is the value of an investment that pays $15,000 every other year forever, if the first payment occurs one year from today and the discount rate is 10 percent compounded daily? What is the value...
-
Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31, 2019:...
-
Your company is about to bid for a tender of a 4-storey high-end bungalow project in a silty clay soil area. It is known that there are hard strata located at a depth of 7 m below ground surface. One...
-
Carla Vista Ltd. received a $270000 grant from the federal government to help buy equipment as an incentive for them to establish manufacturing operations in Ottawa. The company assumes the equipment...
-
Example: In January 2020, Khaled (trader) imported goods costing JD 1,000,000, and pay JD 400,000 customs. He baid JD 224,000 VAT on the total cost (1.4 m). The imported goods are subject to the VAT...
-
Please read the Waste Management Case (find this case in E-Reserves) AND the read the pages on management's assertions on pages 243-246 in chapter 6. Discuss and arrive at conclusions to the...
-
7 01:52:31 Fred Fox Company received its bank statement for May 31, 2022. It showed an ending balance of $9,450. The balance in the company's Cash account on the same date was $7,731. The following...
-
a. Define power and state its unit. b. Write a word equation for the kinetic energy of a moving object. c. A car of mass 1100 kg starting from rest reaches a speed of 18 m s 1 in 25 s. Calculate the...
-
2.) Find the Laplace transform of f(t) 7e-St cos 2t +9 sinh2 2t. Use Laplace Table. %3D
-
Garage, Inc., has identified the following two mutually exclusive projects: a. What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? Is...
-
Consider the following two mutually exclusive projects: Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent. What is the crossover rate for these twoprojects?...
-
Light Sweet Petroleum, Inc., is trying to evaluate a generation project with the following cash flows: Year Cash Flow 0-$39,000,000 1 63,000,000 2 -12,000,000 a. If the company requires a 12 percent...
-
Ridge Crest Company has beginning Retained Earnings of $23,000, ending Retained Earnings of $32,600, and net income of $15,500. What was the amount of dividends declared during the year?
-
Solomon Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost Fixed manufacturing cost $ 8.50 per unit Fixed selling and administrative...
-
Shadee Corporation expects to sell 640 sun shades in May and 380 in June. Each shade sells for $134. Shadee's beginning and ending finished goods inventories for May are 70 and 40 shades,...
Study smarter with the SolutionInn App