fin3331 022101 tvm multi step

fin3331 022101 tvm multi step - N=18 I=15 PV=0 FV=42,824.46...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Fin3331 022101 You want to provide 15000 per year for your child for college. She will enter college at age 18 and pay each annual payment at year end. You can earn 15 percent on your money. Step one. Lump sum needed at age 18. N=4 PMT=15,000 FV=0 I=15 PV= - 42,824.46 Step two. Annual contributions needed to reach that goal.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: N=18 I=15 PV=0 FV=42,824.46 CPT PMT= -564.69 Now, assume that Aunt Martha comes to town and proposes to set aside a single lump sum amount into a mutual fund. How much should she set aside. Only changes required are: PMT = 0 CPT PV = -3,460.45...
View Full Document

Ask a homework question - tutors are online