You are saving money for your daughter's private school tuition of $110,000, which is needed in 9 years. To this end, you decide to deposit an amount into a savings account with 4% nominal rate compounded monthly. Assuming you make no other deposits, how much would your initial deposit need to be? a. $67,073.23 b. $70,313.49 c. $73,555.96 d. $76,790.35
You are saving money for your daughter's private school tuition of $110,000, which is needed in 9 years. To this end, you decide to deposit an amount into a savings account with 4% nominal rate compounded monthly. Assuming you make no other deposits, how much would your initial deposit need to be? a. $67,073.23 b. $70,313.49 c. $73,555.96 d. $76,790.35
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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You are saving money for your daughter's private school tuition of $110,000, which is needed in 9 years. To this end, you decide to deposit an amount into a savings account with 4% nominal rate compounded monthly. Assuming you make no other deposits, how much would your initial deposit need to be? a. $67,073.23 b. $70,313.49 c. $73,555.96 d. $76,790.35
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