Solution-How much money do they need to put into the account

How much money do they need to put into the account

Reference no: EM133103567

Question - Your cousin is currently 13 years old. She will be going to college in 5 years. Your aunt and uncle would like to have $120,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.5% per year, how much money do they need to put into the account today to ensure that they will have $120,000 in 5 years?

Reference no: EM133103567

Questions Cloud

Determine the yield to maturity : The 15-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The current market price for the bond is $1,080. Determine the yield to maturity

Define the terms salary and wages : Define the terms "salary" and "wages". Why do you think we use these two separate terms to describe employee payments

Determine the amount of factory overhead : Use this information to determine the amount of factory overhead that was applied to job A-1. Round to nearest whole number (no cents)

What are its costs and? benefits : If the change in sales is the only consequence of this? decision, what are its costs and? benefits? Is it a good? idea

How much money do they need to put into the account : If the account promises to pay a fixed interest rate of 4.5% per year, how much money do they need to put into the account today

Prepare the journal entries to reflect the distribution : Salary allowances are $20,000 for Gibs and $30,000 for Reed. No interest is given on partners capital balances. Prepare journal entries to reflect distribution

Prepare an income statement for beginning with income : Chance's after-tax income "from its continuing operations is $750,000. Prepare an income statement for 2021 beginning with income from continuing operations

Research Paper on UNIX Operating System : Research Paper on UNIX Operating System from its creation to its influence - The research paper will be 4-5 pages long and utilize five academic resources

What is improbity : What is improbity? How does it relate to management accounting? Have you ever worked for a company where this become a problem

User Account

All Pages

How much money do they need to put into the account

Reference no: EM133103567

Reference no: EM133103567

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT