How much money do they need to put into the account

Assignment Help Financial Management

Reference no: EM131967830

Your cousin is currently 10 years old. She will be going to college in 8 years. Your aunt and uncle would like to have $95,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3.6% per? year, how much money do they need to put into the account today to ensure that they will have $95,000 in 8 ?years?

Reference no: EM131967830

Questions Cloud

Compute the payback period and net present value : Compute the Payback Period, Net Present Value and Internal Rate of Return for each of the three investment options.

What is their net receivables at the end of the year : During the year, they wrote off a total of $50,000 worth of specific receivables as Uncollectible. What is their Net Receivables at the end of the year?

What important points should every homeowner know : Discuss mortgage loans in terms of the time value of money and loan amortization. What important points should every homeowner know about how mortgages work?

List and describe the three stages of labor : List and describe the three stages of labor. What is the difference between heterozygous and homozygous expression of genes?

How much money do they need to put into the account : how much money do they need to put into the account today to ensure that they will have $95,000 in 8 ?years?

Discuss the importance in credit analysis : Discuss the importance of a bank's credit culture in managing credit risk. What are the five Cs of credit? Discuss their importance in credit analysis.

Special purpose entity to buy their accounts receivable : A firm creates a Special Purpose Entity to buy their accounts receivable. Special Purpose Entity to buy their accounts receivable.

Discuss what type of fund you would use to account : Discuss what type of fund you would use to account for the following activities: A city is about to construct a new sports arena.

How much interest will he pay over the life of the loan : Larry Davis borrows $150,000 at 4 percent interest toward the purchase of a home. His mortgage is for 15 years.

User Account

All Pages