How many college withdrawals will they be able to make

Assignment Help Financial Management

Reference no: EM132064957

A young couple wants to have a college fund that will pay $20,000 at the end of each half-year for 8 years.

(a) If they can invest at 9%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years in order to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $

(b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $31,000 that they contribute to the account, and they continue to make their regular payments as found in part (a).

How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals.

Reference no: EM132064957

Questions Cloud

Calculate the gross proceeds per share : Zimba Technology Corp. recently went public with an initial public offering of 2.8 million shares of stock.

What was the estimated manufacturing overhead : If the estimated direct labor cost was $150,000, what was the estimated manufacturing overhead

Legal issues and relevant points : Consider all the legal issues and relevant points arising in agency from this scenario. In your response, you must consistently refer to relevant Australian age

How much interest will they pay over the 20year life of loan : A young couple takes out a GHS 80,000 mortgage to buy a new condominium. They finance the loan the loan at 7% compounded quarterly for 20 years.

How many college withdrawals will they be able to make : How many college withdrawals will they be able to make before the account balance is $0?

Prepare jana kingston journal entry : Jana Kingston Corporation enters into a lease on January 1, 2014, Prepare Jana Kingston's journal entry to record its January 1, 2014, annual lease payment

Relationship to surrounding demand generators : Undertake a site appraisal of the Intercontinental Hotel Double Bay as described in the 'Virtual FieldTrip' presentation. Heavily supplement your research

What is the npv of the yurdone corporations project : According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow.

Provide positive feedback effects : A brand extension which is well-liked by customers can also provide positive feedback effects, which means that

User Account

All Pages