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3. [2] A couple wants to save $50,000 for their new born baby's college education 18 years from now. Assume the parents make an
3. [2] A couple wants to save $50,000 for their new born baby's college education 18 years from now. Assume the parents make an initial investment of $10,000. How long will it take for the investment to reach their goal? Will they reach their goal in time? Assume an 8% rate of return compounded quarterly. Show the correct formula setup. Round to the nearest tenth of a year.
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
