A family is saving for their child's education. They want to have $80,000 eighteen years from...

 

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A family is saving for their child's education. They want to have $80,000 eighteen years from now. a) How much do they need to deposit each month into an account earning 7.2% interest compounded monthly? Round your answer to the nearest cent. b) What is the interest earned on the account? 2. If you deposit $250 into an account that earns 4.8% interest compounded monthly. a) How much will you have in the account 30 years from now? b) What is the interest earned on the account? 3. If you deposit $300 each quarter into an account earning 3.2% compounded quarterly, how many years will it take the account to grow to $15,000? Round your answer to two decimal places. 4. If you deposit $250 each month into an individual retirement account (IRA) that earns 4.8% interest compounded monthly, a) How much will you have in the account 30 years from now? b) What is the interest earned on the account? A family is saving for their child's education. They want to have $80,000 eighteen years from now. a) How much do they need to deposit each month into an account earning 7.2% interest compounded monthly? Round your answer to the nearest cent. b) What is the interest earned on the account? 2. If you deposit $250 into an account that earns 4.8% interest compounded monthly. a) How much will you have in the account 30 years from now? b) What is the interest earned on the account? 3. If you deposit $300 each quarter into an account earning 3.2% compounded quarterly, how many years will it take the account to grow to $15,000? Round your answer to two decimal places. 4. If you deposit $250 each month into an individual retirement account (IRA) that earns 4.8% interest compounded monthly, a) How much will you have in the account 30 years from now? b) What is the interest earned on the account?

Answer rating: 100% (QA)

Answer 1 a To calculate the monthly deposit needed to reach 80000 in 18 years we can use the formula for the future value of an ordinary annuity A Pdfrac1 rn 1r Where A Future value of the annuity 800... View the full answer