Your sister will start college in five years. She has just informed your parents that she wants to go to a private university that will cost RM18,000.00 per year for four years (assumed at the end of each year). Your parents have started investing RM3,000.00 per year since five years ago. How much will your parents have to invest each year for the next five years to have the necessary funds for your sister's education? Use 10% interest rate throughout this problem.

Your sister will start college in five years. She has just informed your parents that she wants to go to a private university that will cost RM18,000.00 per year for four years (assumed at the end of each year). Your parents have started investing RM3,000.00 per year since five years ago. How much will your parents have to invest each year for the next five years to have the necessary funds for your sister's education? Use 10% interest rate throughout this problem.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 9FPE

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