53. Neal Carter wants to establish a retirement fund for him and his wife. They want to have $1,000,000 in the fund at the end of 30 years. If fund assets will earn 10% compounded annually, how much will need to be invested now?
54. Mike and Amy want to start a college fund for their newborn son, Mason. They are investing $10,000 today. If interest is 6% compounded annually, how much will be in the fund when Mason turns 18 and goes to college?
55. Sarah Halvorsen wants to buy her daughter a car for her 18th birthday. If Sarah's daughter is turning 15 today and interest is 10% per annum compounded semiannually, what would her semiannual investment need to be if the car will cost $28,000 and the 1st payment is made 6 months from today?
53. We need to find the present value given the future value
PV = FV/(1+rate)^n
Amount to be invested now = ...
The solution explains some questions relating to time value of money