Question: Melissa Gould wants to invest today in order to assure

Melissa Gould wants to invest today in order to assure adequate funds for her son’s college education. She estimates that her son will need $20,000 at the end of 18 years; $25,000 at the end of 19 years; $30,000 at the end of 20 years; and $40,000 at the end of 21 years. How much will Melissa have to invest in a fund today if the fund earns the following interest rate?
a. 6 percent per year with annual compounding
b. 6 percent per year with quarterly compounding
c. 6 percent per year with monthly compounding

View Solution:


Sale on SolutionInn
Sales0
Views120
Comments
  • CreatedMay 13, 2015
  • Files Included
Post your question
5000