A family is getting a divorce, and part of the divorce settlement involves setting aside money...
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A family is getting a divorce, and part of the divorce settlement involves setting aside money today for college tuition for their daughter who enters college in 6 years. They estimate that the cost of four years' tuition, food, and lodging at the state university their daughter will attend will be $35,000. (a) Find the lump sum that must be invested at 4% semiannually. (b) Find the amount of interest earned. A family is getting a divorce, and part of the divorce settlement involves setting aside money today for college tuition for their daughter who enters college in 6 years. They estimate that the cost of four years' tuition, food, and lodging at the state university their daughter will attend will be $35,000. (a) Find the lump sum that must be invested at 4% semiannually. (b) Find the amount of interest earned.
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a To find the lump sum that must be invested at 4 semiannually we can use the presen... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
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