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Kendal Jennings has decided to start saving for his daughter’s college education by depositing $3,200 at...

Kendal Jennings has decided to start saving for his daughter’s college education by depositing $3,200 at the end of every year for 18 years. He has determined that he will be able to earn six percent interest compounded annually. He hopes to have at least $90,000 when his daughter starts college in 18 years. Will his savings plan be successful? Use Excel or a financial calculator for computation. Round answer to the nearest dollar.

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Answer #1
1. Computing future value of investment
Investment Amount 3200
Interest Rate 6%
Time Period 18 Years
By Computing Future value using future value annuity table, We get 98898.24
Rounding Off To Nearest Dollar 98898
2. Will the savings plan is successful for requirement of 90000?
Absolutely savings plan is successful because future value of investment more than required amount
i.e 98898

Thank you : )

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