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Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for
Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. They decide to make deposits into an educational savings account on each of their daughter's birthdays, starting with her first birthday. Assume that the educational savings account will return a constant The parents deposit $ on their daughter's first birthday and plan to increase the size of their deposits by each year. Assuming that the parents have already made the deposit for their daughter's th birthday, then the amount available for the daughter's college expenses on her th birthday is closest to:
Use the following information to answer the questions below.
Consider the following four alternatives:
$ received in two years.
$ received in five years.
$ received in eight years.
$ received in ten years.
The ranking of the four alternatives from most valuable to least valuable if the interest rate is per year would be:
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