Question: You estimate that it will take five years to complete your college education. Your parents want to invest enough money today at an interest rate

You estimate that it will take five years to complete your college education. Your parents want to invest enough money today at an interest rate of 8% compounded annually to allow you to withdraw $23,000 at the end of each year for the next five years, with nothing left at the end. The amount of money to invest today is:

Use appendixTable 1,Table 2,Table 3andTable 4.

Multiple Choice

  • $115,000.
  • None of the answers is correct.
  • $33,790.
  • $91,839.
  • $85,959.

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