Question
As of today, your childs education fund has $90,000. The expenditure for her education is expected to be a constant $50,000 per year for 4
As of today, your childs education fund has $90,000. The expenditure for her education is expected to be a constant $50,000 per year for 4 years, starting from Year 8. You have received a large bonus today and wish to use it immediately to completely fund the childs education; that is, to ensure that the childs education fund has enough today to meet the anticipated future needs. If the annual interest rate is expected to be 6%, how much from the bonus amount should you invest in the education fund?
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AS Accounting For AQA
Authors: David Cox,Michael Fardon
2nd Edition
1905777140, 978-1905777143
