Question

Sam Long anticipates he will need approximately $227,000 in 11 years to cover his 3-year-old daughters college bills for a 4


Present value interest factor of $1 per period at i% for n periods, PVIIF(i.n). 80% 10.0% 8.5 % 0.9217 08495 078290 0.7350 07
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Answer #1

Answer: $77,588.60

Explanation:

Investment needed by Sam Long = Amount required in 11 years * PVIF (n*2), r/ 2

= $227,000 * PVIF 22 years, 5%.

= $227,000 * 0.3418

= $77,588.60

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