b2. Alternatively, if a borrower tells you that he needs a loan for 6 years and 3 months and will pay you an annual rate of 5 1/2% for the loan, but will give you only S141.02 back at the end of the loan term , you should only loan him $100 today. What amount does the formula P = Fert indicate that you need to place in a savings account today in order to have $150,000 by the time your daughter goes off to college in 18 years and 6 months if the account earns 3% annually?

b2. Alternatively, if a borrower tells you that he needs a loan for 6 years and 3 months and will pay you an annual rate of 5 1/2% for the loan, but will give you only S141.02 back at the end of the loan term , you should only loan him $100 today. What amount does the formula P = Fert indicate that you need to place in a savings account today in order to have $150,000 by the time your daughter goes off to college in 18 years and 6 months if the account earns 3% annually?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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