Question: Ruby is expecting her first child next month and would like to have 80000, not including any grant,saved for university education when the child turns

Ruby is expecting her first child next month and would like to have 80000, not including any grant,saved for university education when the child turns 17. If Ruby can get a 6.6 percent annual return on the education savings for her child, how much does she need to start saving each month once the baby is born? Assume she is not eligible for the CESG.

a. $224

b. $218

c. $2688

d. $392

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!

For someone whose salary is $120,000, what type of investment income receives the lowest tax consequences? a. Dividends b. Trust income c. Capital gains d. Interest Ruby is expecting her first child...

Ruby is expecting her first child next month and would like to have $80,000 saved for university education when the child turns 17. If Ruby can get a 6.5 percent annual return on the education...

Ruby is expecting her first child next month and would like to have $80,000 saved for university education when the child turns 17. If Ruby can get a 7 percent annual return on the education savings...

Part A Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the child turns 17. Ruby expects that tuition at that...

seless..needed sefesten Protected Vi al Editing Part A: Financial Goals Ruby and Max are expecting their first child next month and would like to have enough saved for university education when the...

EDMONDS CASEPERSONAL INFORMATION AND BACKGROUND Rick and Cheryl Edmonds live in a cozy neighborhood outside of Harrisburg, Pennsylvania. They married in their mid-30s, when Cheryl moved to the area...

write a 3-5 sentence summery about the main arguments of the text Introduction: "My happy supportive smile is running out" On November 10, 2004, an open letter posted to a blog titled "EA: The Human...

(Questions from Lecture and Article) - Discussion Board Activity I need to read the following Lecture Note and the ?Wall Street Journal? articles that I uploaded, and writeanswers for theDiscussion...

Harper, age 45, earns $300,000 annually from Atlas, which sponsors a SIMPLE, and the required non-elective contributions to all eligible employees. What is the maximum total contribution to Harper's...

QUESTION 1: After 10 years of marriage, Ashley and Charles have decided to separate. Charles will take the custody of the children and will stay home for the next 8 years. Since Charles will have no...

First choose a public company you are interested in and locate their financial statements. You may go to sec.gov and search by business name. Locate a recent "10 Q" or "10 K" from the filings...

1. In an experiment where you roll two regular six-sided dice, here are some events: A: Both of the dice show 5. B: The sum of the dice is 5. C: At least one of the dice is 5. (a) What are the...

The Artisan Wines is a retail store selling fine wines. On December 3 1 , 2 0 X 1 , the firm s general ledger contained the accounts and balances below. All account balances are normal. Cash$ 4 4 , 1...

Pharoah Company reported the following amounts for 2022: Raw materials purchased $95,200 Beginning raw materials inventory 5,824 Ending raw materials inventory 5,040 Beginning finished goods...