Ask Question, Ask an Expert


Ask Homework Help/Study Tips Expert

A grandmother is looking for a plan to finance her new grandchild's college education. She consists of $45,000 to invest. Search the internet and place a long-range investment plan, CD, Savings Bond and so on for the grandmother. The plan is to earn compound interest.

Compute the future value of the investment. You should use the advertised interest rate, the number of compounding periods per year and the time the funds will be invested. If you are not given the number of compounding periods a year, utilize monthly compounding. 

1) The principal is $45,000. This is P.

2) Research the annual interest rate for your investment. This is r.

3) State the time in years for the investment (as in if the new grandchild will be attending college). This is t.

4) Describe the number of compounding periods per year. This is n.

5) Model the future value of Grandma's investment as the exponential function, with time as the independent variable: F(t) = P(1 + r/n) nt

6) Show all the intermediate computations and state the future value of Grandma's investment.

7) Use the Internet or library resources to find out the average cost of a college education today; will grandma's investment be capable to cover the cost in today's dollars; what about in the future?

8) What other costs, alongside tuition, might be incurred by the college-bound grandchild?

9) How much would grandmother have to invest, and at what compound interest rate and terms would grandmother have to invest this money to completely cover the grandchild's college experience? Show how you determined such values.

10) Sum up your findings in writing by using proper style and grammar. 

Homework Help/Study Tips, Others

  • Category:- Homework Help/Study Tips
  • Reference No.:- M916481

Have any Question? 

Related Questions in Homework Help/Study Tips

Governmentcivil liberties are something that every human is

Government Civil liberties are something that every human is entitled to, and those liberties cannot be taken away by government. However, if we wish to live in a civil society then we sometimes agree to ALLOW our govern ...

You have been hired as a consultant by an advertising firm

You have been hired as a consultant by an advertising firm that is developing a series of commercials for a family-oriented theme park. The commercials will target family members at various life stages. You have decided ...

Developmentally appropriate practicesone of the most

Developmentally Appropriate Practices One of the most important aspects of your role as an educator will be to effectively plan developmentally appropriate learning experiences for each child. Although effective planning ...

Assignment biostatistics and health measurementssullivan

Assignment: Biostatistics and Health Measurements Sullivan (2012) provides a comprehensive overview of the relationship of biostatistics to public health. Consider how biostatistics is used to quantify the evidence and e ...

Part 1modular learning outcomesupon successful completion

Part 1 Modular Learning Outcomes Upon successful completion of this module, the student will be able to satisfy the following outcomes: •Case ?Evaluate the role of HR when dealing with new ideas for stress management. •S ...

Subject-environmental toxins SUBJECT-Environmental Toxins Paper Resources • Environmental

SUBJECT-Environmental Toxins Paper Resources • Environmental Toxins Paper Scoring Guide. Research one of the toxins listed in the chapter or choose another of personal interest to you. In a 1-2 page paper answer the foll ...

Assignment disorders of the veins and arteriesadvanced

Assignment: Disorders of the Veins and Arteries Advanced practice nurses often treat patients with vein and artery disorders such as chronic venous insufficiency (CVI) and deep venous thrombosis (DVT). While the symptoms ...

Part a - accounting principles assignment-q1 smith catering

Part A - Accounting Principles Assignment- Q1. Smith Catering Service completed the following transactions during its first month of operations for July 2016: a. Smith Catering Service commenced operations by receiving $ ...

Your chief executive officer ceo has asked you to research

Your chief executive officer (CEO) has asked you to research the potential revenue generated by the addition of bariatric surgery. What is the difference between research and program evaluation? How would you query the C ...

Answer two of the following questions with complete well-w

Answer two of the following questions with complete, well-w ritten essays. 1. Summarize the arguments for and against globalization. In Your opinion, is globalization good for the world? Is it good for your region? Why, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate