Decide to make annual deposits in to savings account

Assignment Help Microeconomics
Reference no: EM13688833

The parents of a young child decide to make annual deposits into a college savings account. The first deposit will be made on her 5th birthday and the last deposit will be made on her 15th birthday. Then starting on her 18th birthday, withdrawals for college expenses will be made as follows: $20,000 on her 18th birthday, $24,000 on her 19th birthday, $28,000 on her 20th birthday, and $32,000 on her 21st birthday. If the yearly interest rate is 10%, during this entire period &time, what is the amount of the equal, annual deposits made on birthdays 5 through 15? You must draw the cash flow.

Reference no: EM13688833

Questions Cloud

Using the dividend-discount model : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
What should it do to interest rates : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..
Decide to make annual deposits in to savings account : The parents of a young child decide to make annual deposits into a college savings account. The first deposit will be made on her 5th birthday and the last deposit will be made on her 15th birthday.
Problems with personal phone calls made during working hours : An agency is having problems with personal phone calls made during working hours. Each minute of a personal call costs the agency $0.50 in wasted wages.
Repaves state highways for the department of transportation : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

Reviews

Write a Review

Microeconomics Questions & Answers

  Describe algebraically the inverse demand curve

d. Describe algebraically the inverse demand curve faced by the firm in this instance. Provide a graph that is consistent with your answer. Based on this graph, explain why this is called the kinked demand model. (Hint: the equation for th..

  Why would firm stay in business if making zero profit

The long-run equilibrium for a perfectly competitive industry occurs when the firms are earning economic profits of zero. Why would firm stay in business if it is making zero economic profits

  Calculate optimal batch size for second cup coffee shop

How much should the retailer set the camera price at in order to maximize his own profit and what is the most logical explanation to what may have happened assuming that both companies kept doing business afterwards as usual?

  What change in government purchases and taxes

Suppose instead that the goverment wished to raise GDP to 7,100, but it was unwilling to run a surplus or deficit. Therefore the change in government purchases would have to be matched by and equal change in taxes. What change in government purcha..

  A perfectly competitive firm has variable cost

1.Suppose in the short run a perfectly competitive firm has variable cost = 6q2, and MC = 12q where q is the quantity of output produced. Also, the firm has fixed cost F = 6144.

  How sensitive is the calculation to the rate of return

Presume that you have saved $10,000 for retirement and are currently 20 years old. Moreover, suppose that you will earn the historical return of about six percent on your portfolio of stocks. How sensitive is the calculation to the rate of return?

  Explain minimum of two ethical and two legal issues of

in november 2011 the us immigration and customs enforcement agency seized 150 web sites accused of selling counterfeit

  A monopolist has two types of customers there are 100 of

a monopolist has two types of customers. there are 100 of type a who will each pay up tp 10 for a single unit of the

  Role of advertising for marketplace

In the early 1980's just as serious health effects were being noted regarding sugar consumption, Kellogg's changed the name of Sugar Pops to Corn Pops (the sugar content didn't change) and the name of Sugar Flakes to Frosted Flakes (still sugar co..

  Demand diagram of the market for loan able funds

Draw a supply/demand diagram of the market for "loan able funds" in the U.S. Use the "interest rate" as the "price" of loan able funds on your diagram. Show the effects of a rise in the expected inflation rate on your diagram.

  How many years will it take the dollars purchasing power

how many years will it take the dollar's purchasing power to be one half what it is now. if the general inflation rate is expected to continue at rate of 6% for an indefinite period

  How policy affect national saving and domestic investment

Suppose that Congress is considering an investment tax credit, which subsidizes domestic investment. (a) How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade bal..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd