Question
1. Assume the total cost of a university education will be $70,000 when your child enters university in 7 years. You presently have $35,000 to
1.
Assume the total cost of a university education will be $70,000 when your child enters university in 7 years. You presently have $35,000 to invest. What annual rate of interest (APR) must you earn, if the interest is compounded quarterly? Enter your answer as a percentage. Do not include the percentage sign in your answer.
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2.
Suppose you take a 9 year loan of $45,000 with an interest rate of 8% and annual payments starting at the end of year 1. What are the annual loan payments?
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Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
978-1111530761
