A trust fund for a 8 - year - old grandchild is being set up by her grandfather. The objective of the grandfather is to have $120,000 when she is 18, that is after 10 years. The grandfather is investing a fixed amount at the end of each quarter. If the fund earns APR of 7.25%, how much money should be invested into the fund at every quarter end?
A trust fund for a 8 - year - old grandchild is being set up by her grandfather. The objective of the grandfather is to have $120,000 when she is 18, that is after 10 years. The grandfather is investing a fixed amount at the end of each quarter. If the fund earns APR of 7.25%, how much money should be invested into the fund at every quarter end?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A trust fund for a 8 - year - old grandchild is being set up by her grandfather. The objective of the grandfather is to have $120,000 when she is 18, that is after 10 years. The grandfather is investing a fixed amount at the end of each quarter. If the fund earns APR of 7.25%, how much money should be invested into the fund at every quarter end?
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