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In order to set up a fund to cover their child's education costs, some parents are considering placing an amount in a trust account on
In order to set up a fund to cover their child's education costs, some parents are considering placing an amount in a trust account on the child's 10th birthday. They estimate that the education fund should allow their child to withdraw $ 3,500 annually, from his 16th to 21st birthday inclusive. How much should they invest, knowing that the fund's rate of return is estimated at 3% per year for the entire term? A. $ 15,878.84 B. $ 13,826.73 C. $ 16,355.21 D. $ 13,424.01 E. $ 17,587.17
In order to set up a fund to cover their child's education costs, some parents are considering placing an amount in a trust account on the child's 10th birthday. They estimate that the education fund should allow their child to withdraw $ 3,500 annually, from his 16th to 21st birthday inclusive. How much should they invest, knowing that the fund's rate of return is estimated at 3% per year for the entire term?
A. $ 15,878.84
B. $ 13,826.73
C. $ 16,355.21
D. $ 13,424.01
E. $ 17,587.17
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Authors: Elizabeth Rhyne
1st Edition
0071732985, 9780071732987
