Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 7% annual interest rate, compounded monthly, in order to have $30,000 in the fund at the end of 15 years?

Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 7% annual interest rate, compounded monthly, in order to have $30,000 in the fund at the end of 15 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 23E

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Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at

annual interest rate, compounded

monthly,

in order to have

$30,000

in the fund at the end of

years?

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