You want to create a college fund for a child who is now 3 years old. The fund should grow to $60,000 in 15 years. If an investment available to you will yield 6 percent per year, how much must you invest in a lump sum now to realize the $60,000 when needed? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. Type your response

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter13: Investment Fundamentals
Section: Chapter Questions
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9:53
COMMAS OR $.
5.4
Unanswered 3 attempts left
You want to create a college fund for a child
who is now 3 years old. The fund should
grow to $60,000 in 15 years. If an
investment available to you will yield 6
percent per year, how much must you
invest in a lump sum now to realize the
$60,000 when needed?
Round to the nearest cent. DO NOT
INCLUDE COMMAS OR $.
Type your response
Submit
5.5
Unanswered 3 attempts left
Submit
You plan to retire in 40 years. To provide
for your retirement, you initiate a savings
program of $4,000 per year, yielding 7
percent. What will be the value of the
retirement fund after 40 years?
1/5 answered
X
Transcribed Image Text:9:53 COMMAS OR $. 5.4 Unanswered 3 attempts left You want to create a college fund for a child who is now 3 years old. The fund should grow to $60,000 in 15 years. If an investment available to you will yield 6 percent per year, how much must you invest in a lump sum now to realize the $60,000 when needed? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. Type your response Submit 5.5 Unanswered 3 attempts left Submit You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of $4,000 per year, yielding 7 percent. What will be the value of the retirement fund after 40 years? 1/5 answered X
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