Suppose you have a 1-year old son and you want to provide R75 000 in 17 years towards his college education. You currently have R5000 to invest. What interest rate must you earn to have the R75 000 when you need it?

Suppose you have a 1-year old son and you want to provide R75 000 in 17 years towards his college education. You currently have R5000 to invest. What interest rate must you earn to have the R75 000 when you need it?

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 11E

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Suppose you have a 1-year old son and you want to provide R75 000 in 17 years towards his
college education. You currently have R5000 to invest. What interest rate must you earn to have
the R75 000 when you need it?

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