SOLVE the following: i. Suppose that your five-year old daughter has just announced her desire to attend college. After some research, you determined that you will need about RM 100,000 on her 18th birthday to pay for four years of college. If you can earn 8% annually on your investments, how much do you need to invest today to achieve your goal? ii. Suppose you have an extra RM100 today that you wish to invest in for one year. If you can earn 10% per annum on your investment, how much will you have in one year?

SOLVE the following: i. Suppose that your five-year old daughter has just announced her desire to attend college. After some research, you determined that you will need about RM 100,000 on her 18th birthday to pay for four years of college. If you can earn 8% annually on your investments, how much do you need to invest today to achieve your goal? ii. Suppose you have an extra RM100 today that you wish to invest in for one year. If you can earn 10% per annum on your investment, how much will you have in one year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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