Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that your parents warted to have $100.000 saved for university by your 18 th birthday and they started saving on yout frst birthday. They

image text in transcribed
Assume that your parents warted to have $100.000 saved for university by your 18 th birthday and they started saving on yout frst birthday. They saved the same amourt each year on your bithday and eamed 6.5% per year on their irwestments. a. How much would they have to save each year to reach their goar? b. if they think you will take five years instead of four to graduate and decide to have $140,000 saved, just in case, how much would they have to save each year io reach their new goal? a. To reacti the goal of $100,000, the amount they have to save each year is 5 (Round to the nearest cent)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

Find the partial sum. 1. 2. 3. 50 n=1 100 n=51

Answered: 1 week ago

Question

What concepts should be included in a financial literacy scorecard?

Answered: 1 week ago