4: Your daughter just turned 5 years old. You plan to send her to college beginning on her 18th birthday. You will need to make payments of $8,000 at the beginning of each year for three years. If you can invest in an account that earns an annual effective rate of 4%, how much money will you need to put aside today to cover these payments?
4: Your daughter just turned 5 years old. You plan to send her to college beginning on her 18th birthday. You will need to make payments of $8,000 at the beginning of each year for three years. If you can invest in an account that earns an annual effective rate of 4%, how much money will you need to put aside today to cover these payments?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:4: Your daughter just turned 5 years old. You plan to send her to college beginning on her
18th birthday. You will need to make payments of $8,000 at the beginning of each year
for three years. If you can invest in an account that earns an annual effective rate of 4%,
how much money will you need to put aside today to cover these payments?
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