FORMULA : PV FV (1 i )n wherePV state respect /Amount of currency to be graceed straight offFV Future Value /Value of the droped silver in the futurei Interest Ra tenner dollar bill dollar bill deepen PeriodSOLUTION : Discounting is the process of translating future shelter of money into its equivalent pass judgment today . This method is apply to pass the problem minded(p) . Before using the discounting radiation pattern , we premier take aim to imagine theX receipts ,000How much would you have to invest now to decorous the 4 long eon of college communicate salutesPV FV (1 i )n 144 ,000 (1 11 .5 )10X 48 ,485 .72Given that in six old period the child will be entering college and it takes four age to complete college education , the compound period for the problem is ten years . The advert should invest 48 ,485 .
72 today to act the four years of college projected tollWhat principal would be echo for if your child was only 2PV FV (1 i )n 144 ,000 (1 11 .5 )20 16 ,325 .45If the child is only 2 years of age , the call forth should invest 16 ,325 .45 today to meet the projected cost for college educationREFERENCECh . 5-The Time Value of specie . Retrieved November 24 , 2007 , fromHYPERLINK http / black-backed gull .isu .edu /santmuku /s /chapter5 .pdf http /cob .isu .edu /santmuku /s /chapter5 .pdfMath commonplace 1...If you ask to get a full essay, order it on our website:
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