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

question 218

Short Answer

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
​
$__________

---

Definitions:

Corporate Duties

Responsibilities and obligations that members of a corporation, typically directors and officers, are required to follow in the interest of the corporation.

Business Judgment Rule

A legal principle that protects the decisions of corporate officers and directors when they act in good faith and with a reasonable basis in belief of acting in the best interest of the corporation.

Liability

A legal responsibility or obligation, typically involving financial compensation for loss or damage caused to another party.

Corporate Officer

An individual holding an executive position within a corporation, often vested with specific powers and responsibilities by the bylaws or board of directors.