Question: A CS Plan is a college savings plan that allows relatives to invest money to pay for a child's future college tuition; the account grows

A CS Plan is a college savings plan that allows relatives to invest money to pay for a child's future college tuition; the account grows tax-free. Bob wants to set up a CS Plan account for his new granddaughter and wants the account to grow to $40,000 over 18 years. Ile believes the account will earn 6% compounded semi-annually (twice a year). To the nearest dollar. how much will Bob need to invest in the account now?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Example 9 Using the Compound Interest Formula to Solve for the Principal A 529 Plan is a college-savings plan that allows relatives to invest money to pay for a child's future college tuition; the...

Q:

A 529 Plan is a college-savings plan that allows relatives to invest money to pay for a child's future college tuition: the account grows tax-free. Lily wants to set up a 529 account for her new...

Q:

A 529 Plan is a college-savings plan that allows relatives to invest money to pay for a child's future college tuition; the account grows tax-free. Lily wants to set up a 529 account for her new...

Q:

This is similar to Try It #9 in the OpenStax text. A 529 Plan is a college-savings plan that allows relatives to invest money to pay for a child's tture college tuition; the account grows tax-free....

Q:

Question 1.1. (TCO 1) Jacob has moved into a home with a large acreage and is now finding that his smaller lawnmower is no longer functional. He needs to purchase a riding mower. How would you...

Q:

Good Morning Dr.Ramsey Please assist me with my discussion this week ( min 150 words). Advanced Time Value of Money An advertised monthly lending rate of 0.9% is about 11% per year. This difference...

Q:

HellonDr.Ramsey Can you assist me with my discussion please, Min 150 words due Friday. Basic Time Value of Money It is a common fact that many lottery winners are ?broke? sooner than later. If you...

Q:

I need help with these few questions. Each screenshot has the page number along with the number for each Question i need answered. Please include the number of page and question number in the answers...

Q:

24. Your client has an adjusted gross income of $100,000, owns a 5100,000 house, and has the following expenses: - $5,000 of medical 2 dental - \$5,000 of federal taxes - \$5,000 of state tuxces -...

Q:

Wake Up and Smell the Coffee! (The case is adopted from Cases in Finance 2nd Ed. By Jim DeMello) "Wake up and Smell the coffee!" was the latest slogan that Dan Roth had used in his advertising...

Q:

Identify whether each description most likely applies to managerial or financial accounting. 1. _______ It is directed at external users in making investment, credit, and other decisions. 2. _______...

Q:

Starting with benzene and succinic anhydride and using any other needed reagents, outline a synthesis of 1-phenylnaphthalene.

Q:

24. Consider a sample with data values of 10, 20, 12, 17, and 16. Compute the variance and standard deviation.

Q:

The predetermined amount of defective product that a company permits to be sold is called: a . Kaizen b . Acceptable quality level c . Zero defects d . Taguchi quality loss function

Q:

Explain the difference between manpower planning, human resource planning and workforce planning

Q:

Explain the place of planning in human resource management

Q:

What impact do expectations about gender have upon workplace activities and HR practices? To what extent, if at all, do notions of masculinity and femininity reinforce or challenge traditional...