The cost of a college education is currently $15,000 per year. The expected annual inflation rate over the next five years is 3%. How much money should be deposited at the end of each year for five years in an account earning 10% compounded quarterly so that the balance of the account after five years covers the cost of a college education?

The cost of a college education is currently $15,000 per year. The expected annual inflation rate over the next five years is 3%. How much money should be deposited at the end of each year for five years in an account earning 10% compounded quarterly so that the balance of the account after five years covers the cost of a college education?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 11PROB

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