Financial planning service offers a college savings program

Assignment Help Business Economics

Reference no: EM131011220

A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $13,500 each, with the first payment occurring today, your child’s 12th birthday. Beginning on your child’s 18th birthday, the plan will provide $27,000 per year for four years. What return is this investment offering?

Reference no: EM131011220

Questions Cloud

Should libraries be required to install filtering software : Should people under 18 be subjected to legal curfews or restricted driving privileges? Should libraries be required to install filtering software or otherwise censor the materials that they provide

Dick marginal federal tax rate : A 6.7% McDonald's corporate bond that is taxable at both the state and federal levels. (Hint: Use the TETR.) If the Illinois state tax rate is 6% and Dick's marginal federal tax rate is 30%, which investment yields the highest after-tax return?

What was the firms cash flow to stockholders : The December 31, 2013, balance sheet of Schism, Inc., showed long-term debt of $1,440,000, $148,000 in the common stock account and $2,730,000 in the additional paid-in surplus account. What was the firm’s cash flow to stockholders during 2014? What ..

Mortgage to finance the purchase of a large tract of land : You have just arranged for a $1,780,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 8 percent, and it calls for monthly payments over the next 22 years. However, the loan has an eight-year balloon payment, me..

Financial planning service offers a college savings program : A financial planning service offers a college savings program. The plan calls for you to make six annual payments of $13,500 each, with the first payment occurring today, your child’s 12th birthday. Beginning on your child’s 18th birthday, the plan w..

What is the value of an investment : What is the value of an investment that pays $20,000 every other year forever, if the first payment occurs one year from today and the discount rate is 12 percent compounded daily? What is the value today if the first payment occurs four years from t..

Identify a victim of a specific crime : Identify a victim of a specific crime with a background different from your own. Research at least three scholarly resources from the professional literature

The partnership profit : A partnership showed th following balances: sales, 70 000; cost of sales. 40 000; operating expenses, 10 000; partners' salaries, 13 000; interest paid to banks, 2 000 and partners' drawings, 8 000. The partnership profit is?

Discuss the three major stages of the counseling process : Discuss several types of assessments used by professional counselors. Discuss the three major stages of the counseling process

User Account

All Pages