Question

Ms. Tim has given birth to a baby girl who she wants to pursue
medicine when she turns 18. From the birth date, she decides to
set aside some money so that she can pay for her daughter's subsistence and accommodation expense, when she enters a university to
pursue her medical degree. She anticipates that her daughter will
be in the medical program for 9 years including 3 years of practical
training program. Therefore, she wants to pay her daughter $6000
semi-annually and the first payment will be made at the age of 18.
Calculate the amount Ms. Tim needs to set aside at the birth of her
daughter with 8% interest compounded quarterly.
please maths experts help answer asap

Answer 1

Answer:

$13513

Step-by-step explanation:

9x6000=54000

Given amount set aside = X, then

54000=X(1+8%)¹⁸

54000=X x(1.08)¹⁸

X=54000/3.996

X=13513

So, the amount Ms.Tim needs to set aside is about $13513.

Hope it helps you.

Answer 2

$ 27,027

Total amount that Ms Tim plans to give her baby girl since the time she turns 18 =

Semi-annual pay × 2 × Number of years in a program

= 6000 × 2 × 9

= 1,08,000 $

This amount will be compunded with 8% interest over 18 years.

Let the initial amount be X

∴ 1,08,000 = X × (1 + 8%)^18

∴ X = $\frac{108000}{1.08^(18)}$

∴ X = $ 27,027