The Smiths are planning ahead for their daughter’s education. She’s 8 now and will start college in 10 years. How much will they need to set aside each year to have $65,000 in 10 years if the annual interest rate is 7%? Using Excel spreadsheet template. I, N, PMT, PV, FV, solve for?
The Smiths are planning ahead for their daughter’s education. She’s 8 now and will start college in 10 years. How much will they need to set aside each year to have $65,000 in 10 years if the annual interest rate is 7%? Using Excel spreadsheet template. I, N, PMT, PV, FV, solve for?
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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The Smiths are planning ahead for their daughter’s education. She’s 8 now and will start college in 10 years. How much will they need to set aside each year to have $65,000 in 10 years if the annual interest rate is 7%?
Using Excel spreadsheet template.
I, N, PMT, PV, FV, solve for?
Expert Solution
Step 1
Future value is the estimated value of a current asset that is likely to be received at a future date, discounted at an assumed interest rate for a predetermined period of time. Investors consider the future value of a project to evaluate its value and make a decision to accept or reject it.
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