Now, imagine you are the parent, and 18 years ago, your child was born. At the time of your child's birth, you considered saving money for a college education. 5.) How much money would you need to deposit into a savings account at the time of your child's birth (lump sum) if you wanted to have the amount you figured in question #2 in 18 years? (120, 448) If your rate of return is 8% compounded annually. a) b) If interest is 6.8% compounded monthly.
Now, imagine you are the parent, and 18 years ago, your child was born. At the time of your child's birth, you considered saving money for a college education. 5.) How much money would you need to deposit into a savings account at the time of your child's birth (lump sum) if you wanted to have the amount you figured in question #2 in 18 years? (120, 448) If your rate of return is 8% compounded annually. a) b) If interest is 6.8% compounded monthly.
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
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Figured in #2 is 120,448
![Now, imagine you are the parent, and 18 years ago, your child was born. At the time of your
child's birth, you considered saving money for a college education.
5.) How much money would you need to deposit into a savings account at the time of
your child's birth (lump sum) if you wanted to have the amount you figured in
question #2 in 18 years?
220 448)
a)
If your rate of return is 8% compounded annually.
b)
If interest is 6.8% compounded monthly.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb3cc07b-dc2d-41d9-9f3d-f7fff62ff43e%2F2833bc82-297e-4f4e-9a69-1c5f4d61dbff%2Ffw52q6j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Now, imagine you are the parent, and 18 years ago, your child was born. At the time of your
child's birth, you considered saving money for a college education.
5.) How much money would you need to deposit into a savings account at the time of
your child's birth (lump sum) if you wanted to have the amount you figured in
question #2 in 18 years?
220 448)
a)
If your rate of return is 8% compounded annually.
b)
If interest is 6.8% compounded monthly.
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