You estimate a college education will be $300,000 when your child enters college in 18 years. You presently have $70,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?
You estimate a college education will be $300,000 when your child enters college in 18 years. You presently have $70,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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You estimate a college education will be $300,000 when your child enters college in 18
years. You presently have $70,000 to invest. What annual rate of interest must you earn on your
investment to cover the cost of your child’s college education?
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