Justin is twenty years old and has saved 50,000. He can invest it in a real estate venture that will pay 15% annually for 10 years, and then in a mutual fund for an additional 10 years at a 9.75 annual return. He's hoping that in 20 years, when he is 40, he will have enough money to pay for his child's college education, estimated at about $75000 per year. Will he have enough?

Justin is twenty years old and has saved 50,000. He can invest it in a real estate venture that will pay 15% annually for 10 years, and then in a mutual fund for an additional 10 years at a 9.75 annual return. He's hoping that in 20 years, when he is 40, he will have enough money to pay for his child's college education, estimated at about $75000 per year. Will he have enough?

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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