Your daughter is currently 9 years old. You anticipate that she will be going to college in 9 years. You would like to have $107,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 12% per year, how much money do you need to put into the account today to ensure that you will have $107,000 in 9 years? ... Your deposit today should be $ (Round to the nearest dollar.)

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
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Your daughter is currently 9 years old. You anticipate that she will be going to college in 9 years. You would like to have
$107,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of
12% per year, how much money do you need to put into the account today to ensure that you will have $107,000 in 9
years?
Your deposit today should be $
(Round to the nearest dollar.)
Transcribed Image Text:Your daughter is currently 9 years old. You anticipate that she will be going to college in 9 years. You would like to have $107,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 12% per year, how much money do you need to put into the account today to ensure that you will have $107,000 in 9 years? Your deposit today should be $ (Round to the nearest dollar.)
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