Assume the total cost of a university education will be €290,000 when your child enters college in 18 years. You presently have €40,000 to invest.           Required:   What annual rate of interest must you earn on your investment to cover the cost of your child’s university education? (Round your answer to 2 decimal places (e.g., 32.16).)       Annual rate of interest

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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Assume the total cost of a university education will be €290,000 when your child enters college in 18 years. You presently have €40,000 to invest.

         

Required:
 
What annual rate of interest must you earn on your investment to cover the cost of your child’s university education? (Round your answer to 2 decimal places (e.g., 32.16).)

 

 

 
Annual rate of interest  %
 
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