You Are Planning for You Newly Arrived Daughters Education in 18

question 54

Multiple Choice

You are planning for you newly arrived daughters education in 18 years when she heads off to university. You have a $1,000 and would like to have $10,000 when she enters school. What interest rate must be earned on your investment for this to be possible?

• A) 7.22%
• B) 19.65%
• C) 13.65%
• D) 11.12%

---

Definitions:

Yen Cash Flows

Cash inflows and outflows denominated in Japanese Yen, particularly relevant in financial analyses involving Japanese companies or investments.

Inflation Rate

The pace at which the aggregate price level of commodities and services ascends, reducing the value of money.

Depreciate

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, recognized in accounting to spread the cost of an asset over its useful life.

Canadian Dollar

The official currency of Canada, represented by the symbol CAD or C$.