The Wintergreens are planning ahead for their sons education. Hes eight now and will start college in

Question:

The Wintergreens are planning ahead for their son’s education. He’s eight now and will start college in 10 years. How much will they have to set aside each year to have $65,000 when he starts if the interest rate is 7%?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

See More Books

Question Posted: Sep 13, 2012 04:20 AM

See More Questions

Some of the problems associated with market intervention include: Resource allocation is in disequilibrium Public ownership can lead to waste and poor service Subsidies must be paid for eventually O...
If the interest rate is 7 percent, what is the value of the following three investments? a. An investment that offers you $100 a year in perpetuity with the payment at the end of each year. b. A...
If the interest rate is near zero, should an individual go to college, given the information in the figure in the Challenge Solution? State a simple rule for determining whether this individual...
At each point evaluate the function or indicate that the function is undefined there. k(x,y) = xe, (1,0), (3,3), (0, 12)
Two independently operated laboratories provide historical dating services using radioactive carbon dating methods. A researcher suspects that one laboratory tends to provide older datings than the...
A proton strikes an air molecule in Earth's atmosphere, creating a muon $6.0 \mathrm{~km}$ above the ground. The muon travels toward Earth at nearly $c_{0}$ and decays just before reaching the...
The velocity potential for a spiral vortex flow is given by $\phi=$ $(\Gamma / 2 \pi) \theta-(m / 2 \pi) \ln r$, where $\Gamma$ and $m$ are constants. Show that the angle, $\alpha$, between...
What microenvironmental factors have affected Targets performance over the past few years? When you hear the term discount retail, two names that usually come to mind: Walmart and Target. The two...
As a vice president for Pharmacia (which was acquired by Pfizer in 2003), Dr. Peter Rost was in charge of worldwide marketing for the drug Genotropin, which is a synthetic human growth hormone that...
Mahela is a trader. He took goods costing $100 for his own use. How would Mahela record this in his ledger? Account to be debited Account to be credited A drawings inventory drawings purchases C...
How much will $650 per year be worth in eight years at interest rates of? a. 12%? b. 8%? c. 6%?
What interest rate would you need to get to have an annuity of $7,500 per year accumulate to $279,600 in 15 years?
A company has collected the following information about a new machine that it is evaluating for possible investment: Purchase price .................... $340,000 Salvage value at the end of three...
If a person charges interest on a loan transaction equivalent to the inflation rate than will it be still called Riba? How would then the issue of time value of money be resolved? Assume you are...
a) Compute the inverse the matrix K= - -C183 - C2 C3 81 C1 C2 C3 - $183 C3 82 8182 -C182 C2 C1 C3 C28183 C381 + C1 C283 82 83 assuming that is a rotation matrix b) What should the final value for the...
The beta of Sharrock Companies is 0.8, and the beta of Schoenberger Corporation is 1.4.The 10-year risk-free rate is 3% and the expected market risk premium is 7%. a.What is the beta of a portfolio...
Why did most Americans want to remain neutral during World War II despite the increasing aggression of the Axis powers? How does the film you watched inform your understanding of the effects of...
A future patient/client of yours tells you that he has been very busy with school and work, and recently has only been sleeping 3-5 hours nightly. He explains that his schedule is so busy that there...
Search Instagram for hashtags related to a brand (e.g., #dunkindonuts). What kinds of influence impressions appear for the hashtag you searched? Can you identify key influencers who are sharing...
Perform the indicated operations. In designing a cam for a fire engine pump, the expression is used. Simplify this expression. (3) (3 4 32
Rumors. Alice is throwing a party with n other guests, including Bob. Bob starts a rumor about Alice by telling it to one of the other guests. A person hearing this rumor for the first time will...
How would you interact and advise a client with goals you personally find outlandish but that the client values greatly. Creating a mock dialogue could be helpful?
Contrast the interests of young people and seniors?
What does nonverbal communication mean?
Assume that you are the leadership team of a convenience store chain that has more than 300 outlets. The company is facing an inventory shrinkage problem, and store managers report that the main...
1 . An employee at Amy's candles has noticed that some order quantities in the two reports presented are different although the order numbers are the same. We normally refer to such data as dirty....
On Monday, April 5, 2010, just before 3:00 in the afternoon, miners at Massey Energy Corporation's Upper Big Branch coal mine in southern West Virginia were in the process of a routine shift change....

The Wintergreens are planning ahead for their sons education. Hes eight now and will start college in

Question:

Step by Step Answer:

FVA PMT FVFA ...View the full answer

Practical financial management

Students also viewed these Accounting questions