As of today, your child's education fund has $90,000. The expenditure for her education is expected to be a constant $50,000 per year for 4 years, starting from Year 8. You have received a large bonus today and wish to use it immediately to completely fund the child's education; that is, to ensure that the child's education fund has enough today to meet the anticipated future needs. If the annual interest rate is expected to be 6%, how much from the bonus amount should you invest in the education fund?

Answer rating: 100% (QA)

To ensure that the childs education fund has enough today to meet the anticipated future needs we ne... View the full answer