Your cousin is currently 8 years old. She will be going to college in 10 years. Your aunt and uncle would like to have $95,000 in a savings account to fund her educationat 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 willhave $95,000 in 10 years?The amount they need to put away today is $(Round to the nearest cent.)

Present Value refers to the value of cash flows today which is to be received at some future time…

Answered: Your cousin is currently 8 years old.…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 6E

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