Question
Assume that the total cost of a college education will be $250,000 when your child enters college in 16 years. You presently have $90,000 to
Assume that the total cost of a college education will be $250,000 when your child enters college in 16 years. You presently have $90,000 to invest for this purpose. What rate of interest must you earn to cover the cost of your child's college education? Derive the formula and explain your calculation in detail.
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Fundamentals Of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
16th Edition
0357517571, 978-0357517574
