The parents of a child have just come into a large inheritance and wish to establish...

 

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The parents of a child have just come into a large inheritance and wish to establish a trust fund for her college education. If they estimate that they will need $95,000 in 15 years, how much should they set aside in the trust now if they can invest the money at 2.8% per year compounded quarterly? The parents of a child have just come into a large inheritance and wish to establish a trust fund for her college education. If they estimate that they will need $95,000 in 15 years, how much should they set aside in the trust now if they can invest the money at 2.8% per year compounded quarterly?

Answer rating: 100% (QA)

To solve this problem we will use the present value formula Present Value Fu... View the full answer