If the bank pays 5 compounded annually what lump sum should


A man wishes to set aside some money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 in today's dollars at the girl's 18th birthday The estimated inflation rate is 8%. If the bank pays 5% compounded annually, what lump sum should he deposit on the child's 4th birthday?

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Business Economics: If the bank pays 5 compounded annually what lump sum should
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