Your daughter is currently 10 years old. You anticipate that she will be going to college in 8 years. You would like to have $119,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 10% per year, how much money do you need to put into the account today to ensure that you will have $119,000 in 8 years? Your deposit today should be $ (Round to the nearest cent.)
Your daughter is currently 10 years old. You anticipate that she will be going to college in 8 years. You would like to have $119,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 10% per year, how much money do you need to put into the account today to ensure that you will have $119,000 in 8 years? Your deposit today should be $ (Round to the nearest cent.)
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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![Your daughter is currently 10 years old. You anticipate that she will be
going to college in 8 years. You would like to have $119,000 in a
savings account to fund her education at that time. If the account
promises to pay a fixed interest rate of 10% per year, how much money
do you need to put into the account today to ensure that you will have
$119,000 in 8 years?
Your deposit today should be $. (Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf842d35-a2e6-413e-9260-ef71aff9bd25%2F0efc43d2-40c3-4aaf-a107-c3f20ce2d1a7%2Fxwkvdmh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your daughter is currently 10 years old. You anticipate that she will be
going to college in 8 years. You would like to have $119,000 in a
savings account to fund her education at that time. If the account
promises to pay a fixed interest rate of 10% per year, how much money
do you need to put into the account today to ensure that you will have
$119,000 in 8 years?
Your deposit today should be $. (Round to the nearest cent.)
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