. Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of each year for the next 18 years if the funds can earn 5 percent. If she can earn 7 percent, how much less will she have to invest each year?

. Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of each year for the next 18 years if the funds can earn 5 percent. If she can earn 7 percent, how much less will she have to invest each year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 35P

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. Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan

and wants to know how much she must invest at the end of each year for the next 18 years if

the funds can earn 5 percent. If she can earn 7 percent, how much less will she have to invest

each year?

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