Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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Chapter 9, Problem 46P

Your younger sister, Linda, will start college in five years. She has just informed your parents that she wants to go to Hampton University, which will cost $17,000 per year for four years (cost assumed to come at the end of each year). Anticipating Linda’s ambitions, your parents started investing $2,000 per year five years ago and will continue to do so for five more years. How much more will your parents have to invest each year (A?) for the next five years to have the necessary funds for Linda’s education? Use 10 percent as the appropriate interest rate throughout this problem (for discounting or compounding).

Chapter 9, Problem 46P, Your younger sister, Linda, will start college in five years. She has just informed your parents

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Foundations of Financial Management

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