Mavis never went to university, so when her daughter, Charita was to go to university, Mavis wanted to ensure that she had sufficient savings. Charita starts university tomorrow. Mavis' goal is for savings today that cover four years of $25,000 per year for tuition (to be paid at the beginning of the year), plus a lump sum of $50,000 available at the beginning of the 5th year to cover further studies. How much does Mavis have in available funds, assuming a discount rate of 7%, compounded semi-annually? Question 8Select one: a. $128,431 b. $ 122,417 c. $125, 907 d. $124, 695
Mavis never went to university, so when her daughter, Charita was to go to university, Mavis wanted to ensure that she had sufficient savings. Charita starts university tomorrow. Mavis' goal is for savings today that cover four years of $25,000 per year for tuition (to be paid at the beginning of the year), plus a lump sum of $50,000 available at the beginning of the 5th year to cover further studies. How much does Mavis have in available funds, assuming a discount rate of 7%, compounded semi-annually? Question 8Select one: a. $128,431 b. $ 122,417 c. $125, 907 d. $124, 695
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 52P
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