If you want to invest in a $ 300 monthly savings plan for the future student of one of your children, starting in January 2017, and if you expect your child to start college in January 2030, how much will you have accumulated a month before that start your studies? Suppose the effective annual return is 3.7% capitalizable. Also, since you invest in a long-term contractual plan, you do not pay taxes on the investment returns. Analyze your results and discuss the advantages or disadvantages of this plan. The latter is what is most valued for the weekly forum.

Answer rating: 100% (QA)

Time period n 1312 156 months Rate of return 37 12 0308 Future Value FV Monthly Payment pmt 300 Now ... View the full answer