Fred needs to accumulate $40,000 for his sons first year college tuition in 10 years.

How much does Fred need to set aside today to achieve his goal? Assuming he will add no more mon-

ey later to this fund, and he can earn 8% annual interest on his savings. ( Present value interest factor

at 8%, in 10 years is PVIF(8%, 10) = 0.463)

Question 12 options:

$24,000

$18,520

$9,260

$150,000l