Today Dante and Sharon had their first child. All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their child’s future. They are nervous about the stock market so they’ve decided to put their money in a GIC which earns an interest rate of 2.6%, compounded monthly. How much money will they have in the account by their child’s 18th birthday? How much interest will be earned?
Today Dante and Sharon had their first child. All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their child’s future. They are nervous about the stock market so they’ve decided to put their money in a GIC which earns an interest rate of 2.6%, compounded monthly. How much money will they have in the account by their child’s 18th birthday? How much interest will be earned?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.18E
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Today Dante and Sharon had their first child. All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their child’s future. They are nervous about the stock market so they’ve decided to put their money in a GIC which earns an interest rate of 2.6%, compounded monthly. How much money will they have in the account by their child’s 18th birthday? How much interest will be earned?
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