Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $90,000

image text in transcribed

Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $90,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.3% per year, how much money do they need to put into the account today to ensure that they will have $90,000 in 6 years? The amount they need to put away today is $ . (Round to the nearest cent.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Risk Management

Authors: Angelo Corelli

1st Edition

0415746183, 978-0415746182

More Books

Students also viewed these Finance questions