Congratulation on your new baby. As a gift, your grandmother has offered to fund your child's first year of college.You estimate that your child's 1st year of college will cost $50,000. Grandmother plans to buy an 18-year CD which will pay 3.7% interest compounded annually.

How much will she have to invest today(one time payment ). to assure that she will have $50,000 in 18 years when your child enters college?

Answer rating: 100% (QA)

We can use the formula for the future value of a single s... View the full answer