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Sammy is planning for his son's education. He expects his son will start post-secondary studies in 10 years. He is planning to provide his son with $25,000 at the beginning of every year for 4 years, and an additional $10,000 at the start of his program. At a return of 5%, compounded monthly, how much must Sammy have saved by the time his son leaves home to pursue his studies? Round to the nearest dollar. Select one: a. $102,933 b. $92,933 c. $125,671 d. $113,461

Sammy is planning for his son's education. He expects his son will start post-secondary studies in 10 years. He is planning to provide his son with $25,000 at the beginning of every year for 4 years, and an additional $10,000 at the start of his program. At a return of 5%, compounded monthly, how much must Sammy have saved by the time his son leaves home to pursue his studies? Round to the nearest dollar. Select one: a. $102,933 b. $92,933 c. $125,671 d. $113,461

Essentials Of Investments
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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Sammy is planning for his son's education. He expects his son will start post-secondary studies in 10 years. He is planning to provide his son with $25,000 at the beginning of every year for 4 years, and an additional $10,000 at the start of his program. At a return of 5%, compounded monthly, how much must Sammy have saved by the time his son leaves home to pursue his studies? Round to the nearest dollar. Select one: a. $102,933 b. $92,933 c. $125,671 d. $113,461
Transcribed Image Text:Sammy is planning for his son's education. He expects his son will start post-secondary studies in 10 years. He is planning to provide his son with $25,000 at the beginning of every year for 4 years, and an additional $10,000 at the start of his program. At a return of 5%, compounded monthly, how much must Sammy have saved by the time his son leaves home to pursue his studies? Round to the nearest dollar. Select one: a. $102,933 b. $92,933 c. $125,671 d. $113,461
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