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Draper College predicts that in 18 years it will take $300,000 to attend the college for four years. Emma has a substantial amount of cash and wishes to invest a lump sum of money for her child's college fund. How much should Emma put aside in an account with an APR of 12 % compounded monthly in order to have $300,000 in the account in 18 years? Round your answer to the nearest cent, if necessary.

Draper College predicts that in 18 years it will take $300,000 to attend the college for four years. Emma has a substantial amount of cash and wishes to invest a lump sum of money for her child's college fund. How much should Emma put aside in an account with an APR of 12 % compounded monthly in order to have $300,000 in the account in 18 years? Round your answer to the nearest cent, if necessary.

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.12AMCP
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Question 16 Draper College predicts that in 18 years it will take $300,000 to attend the college for four years. Emma has a substantial amount of cash and wishes to invest a lump sum of money for her child's college fund. How much should Emma put aside in an account with an APR of 12 % compounded monthly in order to have $300,000 in the account in 18 years? Round your answer to the nearest cent, if necessary.
Transcribed Image Text:Question 16 Draper College predicts that in 18 years it will take $300,000 to attend the college for four years. Emma has a substantial amount of cash and wishes to invest a lump sum of money for her child's college fund. How much should Emma put aside in an account with an APR of 12 % compounded monthly in order to have $300,000 in the account in 18 years? Round your answer to the nearest cent, if necessary.
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