A father of a family wishes to establish an investment fund so that his daughter, who is currently 3 years old, can study a university degree in the city. The father expects her daughter to begin her studies in exactly 15 years, at the age of 18. This fund would be deposited in a bank that pays an interest rate of 9% per year with monthly capitalization. The degree is 8 semesters with a cost today IN2025 Evaluation and Administration Projects Individual Activity Advanced application in financial instruments of $ 125,000 per semester. Likewise, the father expects the semester cost to increase by 5% semester in accordance with its historical trend. If the investment fund is created in the present (at the future student's age of 3), and tuition payments are made at the end of each of the semesters completed, how much would the parent have to deposit? to cover the total cost of your daughter's studies, if you only make the initial deposit?

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Rate of interest i 9 pa 075 per month Assuming that each semester costs 125000 by todays standards t... View the full answer