Question
Carol is planning for her son's college education to begin five years from today. She estimates the yearly tuition, books, and living expenses to be
Carol is planning for her son's college education to begin five years from today. She estimates the yearly tuition, books, and living expenses to be $5,000 per year for a four-year degree. How much must Carol deposit today, at an interest rate of 8 percent, for her son to be able to withdraw $5,000 per year for four years of college?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
