Question you have decided that you want to have 125000 for, Ask an Expert

Finance

Question: You have decided that you want to have $125,000 for child's college education 21 years from now. Assume an interest rate is 15% per year for projection purposes. How much do you need to deposit each year if your first deposit is now and the last deposit is 18 years from now to achieve this goal. (All deposits are the same amount, do not use spreadsheet) Do not use single payment, use uniform payments.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92803581

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Timco can generate eps of 4 per year forever by maintaining

Timco can generate EPS of $4 per year forever by maintaining current operations. Tim has an investment opportunity for the firm that he expects will generate a 12% return. He would have to reinvest 25% of his earnings. S ...

If current market yields in the bond market are above the

If current market yields in the bond market are above the coupon rate of a particular bond-what will happen to the intrinsic value (PV and market price)?

Set up an amortization schedule for a 15000 loan to be

Set up an amortization schedule for a $15,000 loan to be repaid in equal installments at the end of each of the next 4 years. The interest rate is 10%. How large must each payment be if the loan is for $30,000? Assume th ...

Is there a way to protect and secured the file with a

Is there a way to protect and secured the file with a password, checked compatibility, and removed inappropriate information on Powerpoint?

You have just arranged for a 1840000 mortgage to finance

You have just arranged for a $1,840,000 mortgage to finance the purchase of a large tract of land. The mortgage has an APR of 8.6 percent, and it calls for monthly payments over the next 25 years. However, the loan has a ...

The stock of company tyk pays dividends annually with next

The stock of company TYK pays dividends annually, with next year's dividend expected to be $1 a share. For the next seven years, dividends are expected to grow at a rate of 6% a year. Thereafter, dividends are expected t ...

If the rate of inflation is 43 what nominal interest rate

If the rate of inflation is 4.3%?, what nominal interest rate is necessary for you to earn a 2.8% real interest rate on your? investment? ?(Note: Be careful not to round any intermediate steps less than six decimal? plac ...

Assume that a firm could borrow 100 billion dollars the

Assume that a firm could borrow 100 billion dollars. The most straightforward value from the leveraged recapitalization that people would estimate is the present value of interest tax shield. Assume the cost of debt is 0 ...

Suppose that you wish to buy stock and protect yourself

Suppose that you wish to buy stock and protect yourself against DOWNSIDE MOVEMENT IN ITS PRICE. You consider both a covered call and a protective put. What factors will affect your decision?

Question - the cost of raising capital through retained

Question - The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The current risk-free rate of return is 4.2%. The market risk premium is 6.1%. D'Amico Co. ...

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

Recent Questions

Ask Basic Finance Expert