education. I anticipate being able to earn 14% compounded annually fo compounded annually for years #11 through #20. To the nearest dol should I invest today in order to meet my goal? Please use the table an compute the answer. ( N

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 9PROB
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Q9. Eighteen years from now I will need to have $120,000 to pay for my child's post-secondary
education. I anticipate being able to earn 14% compounded annually for the first 10 years and 11%
compounded annually for years #11 through #20. To the nearest dollar, what amount of money
should I invest today in order to meet my goal? Please use the table and the financial calculator to
compute the answer.
N
I/Y
P/Y
C/Y
PV
PMT
FV
Answer
Transcribed Image Text:Q9. Eighteen years from now I will need to have $120,000 to pay for my child's post-secondary education. I anticipate being able to earn 14% compounded annually for the first 10 years and 11% compounded annually for years #11 through #20. To the nearest dollar, what amount of money should I invest today in order to meet my goal? Please use the table and the financial calculator to compute the answer. N I/Y P/Y C/Y PV PMT FV Answer
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