1 answer

Your cousin is currently 14 years old. She will be going to college in 4 years....

Question:

Your cousin is currently 14 years old. She will be going to college in 4 years. Your aunt and uncle would like to have $110,0
Your cousin is currently 14 years old. She will be going to college in 4 years. Your aunt and uncle would like to have $110,000 in a savings account to fund her education at that time of the account promises to pay a fixed interest rate of 3.7% per year, how much money do they need to put into the account today to ensure that they will have $110,000 in 4 years? The amount they need to put away today is $(Round to the nearest cent.)

Answers

Calulation of amount to be kept away

Future Amount = Investment*(1+Rate)number of years)

$110000=Investment*(1+0.037)4

$110000= Investment*1.20

$110000/1.20= Investment

Investment= $91666.67

.

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