Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years...

 

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Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years and believes that she can earn 12% per year. Caroline believes Kayla is overly optimistic about her earning ability and believes Kayla can only earn 6% per year. What is the difference in the amount Kayla must deposit if Caroline is correct to have $100,000 upon graduation? Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years and believes that she can earn 12% per year. Caroline believes Kayla is overly optimistic about her earning ability and believes Kayla can only earn 6% per year. What is the difference in the amount Kayla must deposit if Caroline is correct to have $100,000 upon graduation?

Answer rating: 100% (QA)

To find the difference in the amount Kayla must deposit if Caroline is correct about the earning ... View the full answer