Your sister will start college in five years. She has just informed your parents that she wants to go to a private university that will cost RM18,000.00 per year for four years (assumed at the end of each year). Your parents have started investing RM3,000.00 per year since five years ago. How much will your parents have to invest each year for the next five years to have the necessary funds for your sister's education? Use 10% interest rate throughout this problem.
Your sister will start college in five years. She has just informed your parents that she wants to go to a private university that will cost RM18,000.00 per year for four years (assumed at the end of each year). Your parents have started investing RM3,000.00 per year since five years ago. How much will your parents have to invest each year for the next five years to have the necessary funds for your sister's education? Use 10% interest rate throughout this problem.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Question
Your sister will start college in five years. She has just informed your parents
that she wants to go to a private university that will cost RM18,000.00 per year
for four years (assumed at the end of each year). Your parents have started
investing RM3,000.00 per year since five years ago. How much will your
parents have to invest each year for the next five years to have the necessary
funds for your sister's education? Use 10% interest rate throughout this
problem.
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