Matilda is planning for her daughter’s university education to begin five years from today. She estimated the annual tuition to be R40 000 per year for a three-year degree. Calculate how much must Matilda must deposit today, at an interest rate of 8% per annum, compounded annually, for her daughter to be able to withdraw R40 000 at the beginning of each year for three years of university. (You can assume an interest rate of 8% throughout the period)
Matilda is planning for her daughter’s university education to begin five years from today. She estimated the annual tuition to be R40 000 per year for a three-year degree. Calculate how much must Matilda must deposit today, at an interest rate of 8% per annum, compounded annually, for her daughter to be able to withdraw R40 000 at the beginning of each year for three years of university. (You can assume an interest rate of 8% throughout the period)
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
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Matilda is planning for her daughter’s university education to begin five years from today. She estimated the annual tuition to be R40 000 per year for a three-year degree. Calculate how much must Matilda must deposit today, at an interest rate of 8% per annum, compounded annually, for her daughter to be able to withdraw R40 000 at the beginning of each year for three years of university. (You can assume an interest rate of 8% throughout the period)
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