Solve the annual payment the fabozzi must make to account

Assignment Help Financial Accounting
Reference no: EM132920796

Joe and Sarah Fabozzi are saving for the college education of their 2-year-old daughter, Beth. The Fabozzi's estimate that college expenses will run $80,000 per year when their daughter reaches college in 16 years. In other words, the first withdrawal will be made on Beth's 18th Birthday and the last deposit (payment) will be made on Beth's 17th Birthday. The expected interest rate while saving and in college is 8%.

Problem 1: Assume today is Beth's second birthday and the first deposit will be made one year from today. Calculate the annual payment the Fabozzi's must make to the account so that their daughter will be completely supported through four years of college. (Enter a positive value and round to 2 decimals) 2,638.15

Reference no: EM132920796

Questions Cloud

Pass the necessary consolidation journal entries : Pass the necessary consolidation journal entries and the journal entries to record the non-controlling interest if the non-controlling interest
Process of deploying models : What are some ways or the process of deploying models that data scientists may use with their stakeholders. This question is about deploying data.
Identify a real-world use case of machine learning : 1). Identify a real-world use case of machine learning, deep learning, or artificial intelligence. It can be an article or multi-media content (e.g., youtube vi
Encountered in life who was particularly effective : Describe a leader you have encountered in life who was particularly effective. What made them more than just a manager?
Solve the annual payment the fabozzi must make to account : Solve the annual payment the Fabozzi's must make to the account so that their daughter will be completely supported through four years of college.
Calculate present value today of annuity for april stigum : April Stigum will receive a 20-year annuity of $10,000 per year. Assuming a required rate of return of 7%, calculate the present value today of her annuity.
Solve the amount will need to deposit today to reach : She plans to spend what she has currently saved today on a new car. Calculate the amount she will need to deposit today to reach her retirement goal.
How is measuring video success on youtube : How is Measuring Video Success On YouTube Different From Measuring Success on other Platforms?
Project management software package : As part of your company's effort to select a project management software package, you have been asked to approach several other companies

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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