Your cousin is currently 13 years old. She will be going to college in 5 years. Your aunt and uncle would like to have $115,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3.6% per year, how much money do they need to put into the account today to ensure that they will have $115,000 in 5 years?
Your cousin is currently 13 years old. She will be going to college in 5 years. Your aunt and uncle would like to have $115,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3.6% per year, how much money do they need to put into the account today to ensure that they will have $115,000 in 5 years?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
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Your cousin is currently 13 years old. She will be going to college in 5 years. Your aunt and uncle
would like to have $115,000 in a savings account to fund her education at that time. If the account
promises to pay a fixed interest rate of 3.6% per year, how much money do they need to put into the
account today to ensure that they will have $115,000 in 5 years?
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