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Investment to cover the cost of child education

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Reference no: EM132370267

1. How much would an investor have to set aside today in order to have $20,000 five years from now if the current rate is 15 percent?

2.  If we deposit $5,000 today in an account paying 10 percent, how long does it take to grow to $10,000?

3. Assume the total cost of a college education will be $50,000 when your child enters college in 12 years. You have $5,000 to invest today. What rate of interest must you earn on your investment to cover the cost of your child's education?

Reference no: EM132370267

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