A young couple wishing to save money for their childs first, Financial Management

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A young couple wishing to save money for their childs first

A young couple wishing to save money for their child's first year in college purchases an insurance policy that will yield $10,000 fifteen years from now. The cost of the policy is $500 per year for 12 years, beginning one year from now. The rate of return on their investment is nearest to:

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Financial Management: A young couple wishing to save money for their childs first

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Financial Management: A young couple wishing to save money for their childs first

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