Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $57,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) Annual rate of interest

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
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Assume the total cost of a college education will be $300,000 when your child enters
college in 18 years. You presently have $57,000 to invest. What annual rate of interest
must you earn on your investment to cover the cost of your child's college education?
(Do not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)
Annual rate of interest
%
Transcribed Image Text:Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $57,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate of interest %
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