Question
During four years of college, twins Molly and Marty each expect to receive gifts from grandparents at $1000, $2000, $3000, and $4000 for Year 1,
During four years of college, twins Molly and Marty each expect to receive gifts from grandparents at $1000, $2000, $3000, and $4000 for Year 1, 2, 3 and 4, respectively. Each twin plans to save all of the funds in a money market fund expected to return 2% per year. What is the NPV (net present value) of the planned gifts for each twin?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
