Q1.

After 18 years, how much money will we have for the university education for our 3 children? If we invest in the given below option:

Current savings = $20,000

semi-monthly contribution of $150 at the end of each period, set aside for the next 18 years = $150 (semi-monthly contribution)

average annual rate of return compounded semi-monthly = 8%

Please use (display + name) the excel function/ formula for all questions

1. University education savings plan
APR	8.00%
period rate
semi-monthly contributions	-$150.00
#periods
Amount available after 18 years:

Ques 2. We have 3 children. Our objective is to give each child $25,000 at the beginning of each year of their engineering college ($75,000 in total per year) for 4 years. How much money would we need to have available in our university education savings fund 18 years from now based on an annual interest rate of 8%? (Also compounded semi-monthly).

Please use (display + name) the excel function/ formula for all questions

2. money needed in fund
period rate
payments	-$75,000.00
#periods
Amount needed 18 years from now:

Ques 3. If our semi-monthly contribution of $150 is not enough to meet our target, how much would we have to contribute to the university savings fund on a semi-monthly basis? (to have the required amount needed when children start college).

Please use (display + name) the excel function/ formula for all questions

3. required contribution
period rate
#periods
Required semi-monthly contribution:

Answer rating: 100% (QA)

To calculate the future value of the university education savings plan you can use the FV Future Val... View the full answer