Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In order to support your daughter's (son's) college education, you decide to save a fixed amount in a college trust fund at the end of
In order to support your daughter's (son's) college education, you decide to save a fixed amount in a college trust fund at the end of every year for eighteen (18) years. You would like to have $120,000 in the fund eighteen (18) years from today. When the average annual rate of return on the fund is 6 percent (compounded annually), how much do you need to save at the end of each year?
A) $2,844 B) $3,883 C) $4,204 D) $11,083
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started