Question
Juan and Sofia have a daughter who has just entered high school. They have started thinking about mailing to the university and will therefore need
Juan and Sofia have a daughter who has just entered high school. They have started thinking about mailing to the university and will therefore need about $ 50,000 when she starts her studies. Although Juan and Sofia have good incomes, they live extravagantly and have almost no savings. Sofia analyzed the family budget and considers that they can save $ 750 per month or $ 2,250 per quarter. They are looking for an investment vehicle that will provide a return on savings of $ 50,000 over 4 years. Instructions: If a compound interest is presumed What is the interest rate to reach the goal? Explain if that interest rate would be realistic.
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