Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Assume the total cost of a college education will be $325,000 when your child enters college in 18 years. You presently have $85,000 to Invest.

image text in transcribedimage text in transcribed Assume the total cost of a college education will be $325,000 when your child enters college in 18 years. You presently have $85,000 to Invest. What annual rate of Interest must you earn on your Investment to cover the cost of your child's college education? Note: Do not round Intermedlate calculatlons and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. At 4.3 percent Interest, how long does it take to double your money? Note: Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16. b. At 4.3 percent Interest, how long does it take to quadruple your money? Note: Do not round Intermedlate calculatlons and round your answer to 2 decimal places, e.g., 32.16

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions