Wednesday

March 4, 2015

March 4, 2015

Posted by **stuck on this one ?** on Saturday, April 30, 2011 at 11:40pm.

- math -
**MathMate**, Sunday, May 1, 2011 at 6:54amInterest, i=9%=0.09 p.a.

Future value, S

Ordinary annuity for 6 years,

n=6

yearly payment, R = $20,000

Find future value when child will be 24 years old:

S = R((1+i)^n-1)/i

= $20,000*(1.09^6-1)/0.09

= $20,000*(7.523335)

= $150,466.69

Present value (when child is 17)

P= S/(1+i)^7

= $82310.43

**Answer this Question**

**Related Questions**

algebra - on average a child grows 2.5 inches per year from age 2 until ...

math - A couple plans to save for their child’s college education. What ...

statistics - From past experience it is felt that the random variable, X, the ...

Calculus - The mass, M, of a child can be approximated based on the height, H, ...

Calculus 1 - The mass, M, of a child can be approximated based on the height, H...

income tax - Kobe is a single dad with two dependent children, Lizzie, age 7 and...

Finance - Baako has invested $75,000 in a trust fund at 9% for his child's ...

Tax - Kobe is a single dad with two dependent children, Lizzie, age 7 and Leslie...

Child Development - My Moral Reasoning assignment says to select one of the age ...

Algebra - age of child over age of child +12 x adult dose. if an adult's dose of...