64 638
Assignments Done
99,2%
Successfully Done
In September 2018

Answer to Question #4679 in Finance for Christine

Question #4679
Chris is planning for her son's college education to begin five years from today. She estimates the yearly tuition, books, and living expenses to be $5,000 per year for a four-year degree. How much must Chris deposit today, at an interest rate of 8 percent, for her son to be able to withdraw $5,000 per year for four years of college?

A. $11,277
B. $13,620
C. $20,000
D. $39,520
Expert's answer
S = P (1 %)^n, 20000 = P 1.08^5, P = 20000/1.08^5 = 13620.
That's why the
correct answer is B: 13620

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions