A man wishes to set aside some money for his daughter's college education. His goal is to
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A man wishes to set aside some money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 with today's purchasing power of the dollar, at the girl's 18th birthday. The estimated inflation rate is 8%. If the bank pays 5% compounded annually, what lump sum of money should he deposit in the bank savings account on the child's 4th birthday?
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Actual Dollars 14 years hence 20000 1 f n 20000 1 008 14 58744 ...View the full answer
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