uppose someone wants to accumulate $55,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $60 per month into an account with an APR of 7%. Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. A. No, because the amount that will be in the college fund, $enter your response here, is less than the goal of $55,000. B. Yes, because the amount that will be in the college fund, $enter your response here, is more
uppose someone wants to accumulate $55,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $60 per month into an account with an APR of 7%. Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. A. No, because the amount that will be in the college fund, $enter your response here, is less than the goal of $55,000. B. Yes, because the amount that will be in the college fund, $enter your response here, is more
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 22P
Related questions
Question
100%
Suppose someone wants to accumulate
$55,000
for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same.The person deposits
A.
B.
$60
per month into an account with an APR of
7%.
Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice.
No,
because the amount that will be in the college fund,
$enter your response here,
is
less
than the goal of
$55,000.
Yes,
because the amount that will be in the college fund,
$enter your response here,
is
more
than the goal of
$55,000.
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