Assume the total cost of a college education will be $525,000 when your infant child enters college in 17 years. Your are fortunate in that your uncle has just given your child a $25,000 gift to start the college fund. How much do you have to invest at the end of each month in order to accumulate the required $525,000 at the end of 17 years if your monthly investments earn an annual interest rate of 3.5 percent, compounded monthly?

Assume the total cost of a college education will be $525,000 when your infant child enters college in 17 years. Your are fortunate in that your uncle has just given your child a $25,000 gift to start the college fund. How much do you have to invest at the end of each month in order to accumulate the required $525,000 at the end of 17 years if your monthly investments earn an annual interest rate of 3.5 percent, compounded monthly?

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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