What lump sum should he deposit on the childs bday

Reference no: EM13225074

A man wishes to set aside money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 in today's dollars at the girl's 18th birthday. The estimated rate is 8%. If the bank pays 5% compounded annually, what lump sum should he deposit on the child's 4th birthday?

Reference no: EM13225074

Questions Cloud

Which represents the situation faced y the two firms : Two firms, Cappcore and Tradiola, are each emitting 6 units of pollution, and the government wants to reduce the total level of pollution from the curent level of 12 to 4. To do this, the government caps each firm's allowed pollution level at 2.

What are the chances to buy either one of two bonds : You have the chance to buy either one of two bonds. The first is a tax-free municipal with a coupon yield of 6.5%. The second is a corporate bond with a yield of 8.5%. Both bonds are rated AA. Your tax rate is 28%.

What actions have either helped or hindered our progress : With regards to the changes within the economic structure, how do politics and government regulation factor into the changes we see to economic activity on both a domestic and global scale What actions have either helped or hindered our progress

What target to try to achieve relative to revenue or costs : Without budgets, how does a company know what target they are trying to achieve relative to revenue or costs? Should a budget be for one year or several Do we budget only for current expenses or budget for capital improvements also

What lump sum should he deposit on the childs bday : A man wishes to set aside money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 in today's dollars at the girl's 18th birthday. The estimated rate is 8%.

Determine what is the value of the tax revenue : A per unit excise tax is imposed on product X, and the market supply with the tax is now given Qs=p-12. add this supply curve to your graph and identify the new equilibrium price and equilbrium quantity. What is the value of the per unit tax

Show the bill of material : Show the bill of material-product structure tree and if 100 units of A are required in week 10, develop the MRP planning schedule, specifying when items are to be ordered and received. There are currently no units of inventory on hand.

How will equilibrium price and quantity change for each good : Suppose a decrease in consumers' income causes a decrease in the demand for chicken and an increase i the demand for potatoes Which good if inferior and which is normal How will the equilibrium price and quantity change for each good

What is hurtful move on the kenyan governments part : In an attempt to reduce poaching of elephant ivory tusks, officials in Kenya burned illegally gathered ivory. Using your understang of shifts in supply and demand, will this turn out to be a helpful or hurtful move on the Kenyan government's part

User Account

All Pages