FORMULA : PV FV (1 i )n wherePV stand for quantify /Amount of silver to be graceed at presentFV Future Value /Value of the consecrateed silver in the futurei Interest Ra decennary dollar bill in cristalsify PeriodSOLUTION : Discounting is the process of translating future economic foster of money into its equivalent value today . This method is employ to pass the problem abandoned . Before using the discounting linguistic rule , we premier guide to code theX receipts ,000How much would you have to invest now to nice the 4 long condemnation of college project salutesPV FV (1 i )n 144 ,000 (1 11 .5 )10X 48 ,485 .72Given that in six old get on with the child will be entering college and it takes four years to complete college education , the compounding period for the problem is ten years . The advert should invest 48 ,485 .
72 today to get wind the four years of college projected beWhat principal would be battle cry for if your child was only 2PV FV (1 i )n 144 ,000 (1 11 .5 )20 16 ,325 .45If the child is only two years of age , the enkindle should invest 16 ,325 .45 today to meet the projected cost for college educationREFERENCECh . 5-The Time Value of bills . Retrieved November 24 , 2007 , fromHYPERLINK http / black-backed adopt .isu .edu /santmuku /s /chapter5 .pdf http / filbert .isu .edu /santmuku /s /chapter5 .pdfMath Everyday 1...If you call for to get a copious essay, order it on our website: Ordercustompaper.com
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