The amount available for the daughters college expenses

Assignment Help Financial Management

Reference no: EM132007247

Suppose that you have just had your first baby and you wish to insure that enough money will be available to pay for your child's college education.

You decide to make deposits into an educational savings account on each of your daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant 7%.

You deposit $2000 on your daughter's first birthday and plan to increase the size of the deposits by 5% each year.

Assuming that you have already made the deposit for your daughter's 18th birthday, then the amount available for the daughter's college expenses on her 18th birthday is?

Reference no: EM132007247

Questions Cloud

Range of discount rates might the company choose project : Based on range of discount rates might the company choose project a or b?

Compute the profitability index for each of the two project : Suppose the following two independent investment opportunities are available to Relax, Inc. The appropriate discount rate is 11 percent.

The investor would receive a payment of : If an investor purchased this bond at the price of $1,000, for each year except the last year, the investor would receive a payment of $

How much manufacturing overhead cost is allocated to product : Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z

The amount available for the daughters college expenses : Suppose that you have just had your first baby and you wish to insure that enough money will be available to pay for your child's college education.

Key financial issues you will concern yourself with : Your finance manager has decided to leave the company with a short notice. What are the key financial issues you will concern yourself with?

Prepare journal entries for the given transactions : On March 31, Frick reissued 250 shares of treasury stock for $25 each. Prepare journal entries for the transactions listed above

Calculate the observed risk premium in each year : Calculate the arithmetic average returns for large-company stocks and T-bills over this period. answer with two decimal places.

Conducting a financial statement analysis : Regardless of the specific line of business, should all healthcare businesses use the same set of ratios when conducting a financial statement analysis?

User Account

All Pages