Angela is planning for her daughter’s university education in seven (7) years’ time. She estimated that the university education will cost $1,955,000. How much should she invest each year for the next seven (7) years to achieve this goal if interest rate is 15%?

Angela is planning for her daughter’s university education in seven (7) years’ time. She estimated that the university education will cost $1,955,000. How much should she invest each year for the next seven (7) years to achieve this goal if interest rate is 15%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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Question

Angela is planning for her daughter’s university education in seven (7) years’ time. She estimated that the university education will cost $1,955,000. How much should she invest each year for the next seven (7) years to achieve this goal if interest rate is 15%?

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