The amount they need to put away today

Assignment Help Financial Management
Reference no: EM132061649

Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.0% per year, how much money do they need to put into the account today to ensure that they will have $100,000 in 6 years? The amount they need to put away today is $___.

(Round to the nearest cent.)

Reference no: EM132061649

Questions Cloud

What will happen to the economy of a country : What will happen to the economy of a country if the government allows the banks to print a lot of money and give the people cheap loans.
Prepare journal entries relating to the stock-option plan : Prepare journal entries relating to the stock-option plan for the years 2015, 2016, and 2017. Assume that employee performs services equally in 2015 and 2016
Example or a situation of a bayesian game : Can you explain to me an example or a situation of a Bayesian game while give me an example?
Probability of failing your final exams : If the probability of failing your final exams are ½. However, if you pass them the probability of going to university is 4/5.
The amount they need to put away today : Your cousin is currently 12 years old. She will be going to college in 6 years. The amount they need to put away today is $___.
Analysis of key project procurement issues : Challenges in megaproject procurements - Analyzing and resolving project procurement seller claims - Unique aspects of IT procurements
Prepare journal entries relating to the stock-option plan : Prepare journal entries relating to stock-option plan for the years 2015, 2016, and 2017. Assume that the employee performs services equally in 2015 and 2016
What is a cross cultural intelligence mindset : Self managed work teams can be a great way to bring employee's together to collaborate as a team can be effective if the managers hire the right individuals.
Volatility of six year yen per dollar forward exchange rate : the volatility of the 6-year “yen per dollar” forward exchange rate is 10%,

Reviews

Write a Review

Financial Management Questions & Answers

  Describe the different organizational stake-holders

Describe the different organizational stake-holders who are directly affected by the organization and how is the organization responsible to these stake-holders

  What is does a fund states it is short the market mean

What is does a fund states it is "SHORT" the market mean?

  What is capital asset pricing model

What is Capital Asset Pricing Model? How would an average investor use the model to decide which stocks to buy or sell?

  What is the yield to maturity on bond

What is the yield to maturity on this bond? If the yield to maturity on this bond increased to 5.20 % , what would the new price be?

  What is the payback period for each project

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 347,000 –$ 49,500 1 48,000 24,300 2 68,000 22,300 3 68,000 19,800 4 443,000 14,900 which ever project you choose, if any, you require a 15 percent return on..

  Results to the T-account entries for the Federal Reserve

An open market purchase of a $100 government security from a bank results to the T-account entries for the Federal Reserve of

  Long-term government bonds are normally distributed

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.7 percent and a standard deviation of 10 percent. What is the probability that your return on these bonds will be le..

  Results of exchange rate changes

Early in September 1983, it took 255 Japanese yen to equal $1. Nearly 28 years later, in August 2011, that exchange rate had fallen to 115 yen to $1. Assume that the price of a Japanese-manufactured automobile was $11,000 in September 1983 and that i..

  About change in the value of the british pound

What must the CFO have expected about change in the value of the British pound over the year to believe in March, 2016

  What will be the level of accounts receivable the change

What will be the level of accounts receivable following the change?

  The calculation of net working capital

Which of the following is included in the calculation of net working capital?

  What is dollar cost averaging

What is dollar cost averaging? If you were an astute investor at timing market moves, would you want to use dollar cost averaging?

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