Q)suppose your child is 10 years old now and you decided to start an education fund your child next year. You plan to contribute $2,500 to this fund in the 1st year and increase the annual contribution by 5% every year. The last payment will be made when your child goes to university at the age of 18. You expect to earn an 8% nual return on this fund. How much do you expect to be the value of the fund when the child goes to the university
Q)suppose your child is 10 years old now and you decided to start an education fund your child next year. You plan to contribute $2,500 to this fund in the 1st year and increase the annual contribution by 5% every year. The last payment will be made when your child goes to university at the age of 18. You expect to earn an 8% nual return on this fund. How much do you expect to be the value of the fund when the child goes to the university
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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NOTE:-I request to you not use excel to solve.if know correct solution then only attempt ok.
Q)suppose your child is 10 years old now and you decided to start an education fund
your child next year. You plan to contribute $2,500 to this fund in the 1st year
and increase the annual contribution by 5% every year. The last payment will be
made when your child goes to university at the age of 18. You expect to earn an 8%
nual return on this fund. How much do you expect to be the value of the fund when the child goes to the university
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