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Your daughter is currently 12 years old. You anticipate that she will be going to college in 6 years. You would like to have $125,000

Your daughter is currently 12

years old. You anticipate that she will be going to college in 6

years. You would like to have $125,000

in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 11%

peryear, how much money do you need to put into the account today to ensure that you will have $125,000

in 6

years?

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