Having Received a Large Inheritance, a Child's Parents Wish to Establish

question 203

Multiple Choice

Having received a large inheritance, a child's parents wish to establish a trust for the child's college education. If 7 year(s) from now they need an estimated $60,000, how much should they set aside in trust now, if they invest the money at the given rate of interest. Round your answer to the nearest cent. ​
13) 5% compounded quarterly _________
​
13) 5% compounded continuously _________
​

• A) $23,444.14, $24,043.68
• B) $23,687.36, $23,320.77
• C) $23,320.77, $23,444.14
• D) $23,687.36, $23,444.14

Understand the definition and importance of sustainable development.

Recognize the significance of intragenerational and intergenerational equity.

Identify different labor practices and decent work performance indicators as per GRI standards.

Explain the function and importance of emissions trading schemes and their role in pollution control.

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Definitions:

Accrued Interest

The interest on a loan or bond that has accumulated since the principal investment, or last payment, and has yet to be paid.

Principal

The original sum of money borrowed in a loan or the initial amount of investment, excluding any interest or dividends.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or institutional investors for the first time.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.