12. Your cousin is currently 14 years old. She will be going to college in 4...
12. Your cousin is currently 14 years old. She will be going to college in 4 years. Your aunt and uncle would like to have $90,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.4% per year, how much money do they need to put into the account today to ensure that they will have $90,000 in 4 years?
Homework Answers
Present value=90,000*Present value of discounting factor(rate%,time period)
=90,000/1.044^4
=90,000*0.841778841
=$75760.1(Approx).
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12. Your cousin is currently 14 years old. She will be
going to college in 4...
Your cousin is currently 14 years old. She will be going to college in 4 years....
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