Assume i=10% 1. Today (t=0) your daughter is born (congratulations and good luck with that!) and you decide to start saving for her education. You figure that you will need to pay for 5 years of undergraduate engineering at $20,000 per year (from t=18 through t=22), and two years for graduate school at $30,000 per year (t=23 and t=24). How much needs to be in her education account at t=18 to fund her education in full? (Choose the closest answer) a) 117,960 b) 118,960 c) 119,960 d) 120,960
Assume i=10% 1. Today (t=0) your daughter is born (congratulations and good luck with that!) and you decide to start saving for her education. You figure that you will need to pay for 5 years of undergraduate engineering at $20,000 per year (from t=18 through t=22), and two years for graduate school at $30,000 per year (t=23 and t=24). How much needs to be in her education account at t=18 to fund her education in full? (Choose the closest answer) a) 117,960 b) 118,960 c) 119,960 d) 120,960
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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using formula sheet only
no excel
answer should be b
Transcribed Image Text:Assume i=10%
1. Today (t=0) your daughter is born (congratulations and good luck with that!) and
you decide to start saving for her education. You figure that you will need to pay for
5 years of undergraduate engineering at $20,000 per year (from t=18 through t=22),
and two years for graduate school at $30,000 per year (t=23 and t=24). How much
needs to be in her education account at t=18 to fund her education in full? (Choose
the closest answer)
a) 117,960
b) 118,960
c) 119,960
d) 120,960
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