Suppose that your child is born this year, and that you'd like to set aside enough money so that your child will have $3,000,000 at retirement in 50 years. If the rate of return on your money averages 7% per year over the next 50 years, how much do you have to invest today so that your child will have $3,000,000 in 50 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 35P
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General Accounting

Suppose that your child is born this year, and
that you'd like to set aside enough money so that
your child will have $3,000,000 at retirement in
50 years. If the rate of return on your money
averages 7% per year over the next 50 years,
how much do you have to invest today so that
your child will have $3,000,000 in 50 years?
Transcribed Image Text:Suppose that your child is born this year, and that you'd like to set aside enough money so that your child will have $3,000,000 at retirement in 50 years. If the rate of return on your money averages 7% per year over the next 50 years, how much do you have to invest today so that your child will have $3,000,000 in 50 years?
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