Homework Help: Business Finance

Posted by allison on Friday, February 3, 2012 at 4:44pm.

you are saving for your child's college.. there are 15 years before they will be in college. you have saved 0 so far. Your goal is $98,000. assume annual in rate is 8%. how much must you save at the end of each year in equal amounts to reach your goal? I know that with the hp10bII calc I am using, I would use 15N, 8 I/Yr, $98,000FV. I am just not sure if I am coming up with the correct payment though.

Business Finance - Reiny, Friday, February 3, 2012 at 5:21pm
i = .08
n = 15

paym( 1.08^15 - 1)/.08 = 98000
paym = 98000/27.15211393 = $3609.30

Answer this Question

Related Questions

Finance - Professor Anderson has a daughter who is 3 years old. In 15 years she ...
Finance - Professor Anderson has a daughter who is 3 years old. In 15 years she ...
Finance - 5. John and Daphne are saving for their daughter Ellen's college ...
child care management mod 4 - Teachers in child care centers should meet which ...
Finance - shley is planning to attend college when she graduates from high ...
Finance - If a father wants to have $100,000 to send a newborn child to college...
persuasive essay!! - Is it better to go to college and be successful or open ...
finance - Anne is planning to attend college when she graduates from high school...
business math - The parents of a child have just come into a lare inheritance ...
business - . I have $2,000 that I can put away for my daughter’s college ...

For Further Reading

First Name:
School Subject:
Answer: