trust fund for a childs education is being set up by a single payment so that at the end of 15 years there will be shs24,000,000. If the fund earns interest at the rate of 7% compounded semi-annually how much money should be paidinto the fund initially?

The present worth of the amount that is required to be accumulated at the end of 15 years at a given…

Answered: trust fund for a childs education is…

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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trust fund for a childs education is being set up by a single payment so that at the end of 15 years there will be shs 24,000,000. If the fund earns interest at the rate of 7% compounded semi-annually how much money should be paid into the fund initially?