Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it
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- Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry.
Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum.
Required:
How would you define the amount of $30 000 and $150 000 in terms of the time value of money?How long will she have to wait until she reaches the goal of $150 000?
Related Book For
Principles Of Managerial Finance Brief
ISBN: 9781292267142
8th Global Edition
Authors: Chad J. Zutter, Scott B. Smart
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