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 $60,000, how much should they set aside in trust now, if they invest the money at the given rate of interest. Round your answer to the nearest cent.
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13.5 compounded quarterly
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$__________
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13.5 compounded continuously
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$__________

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Definitions:

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Corporate

Pertaining to corporations, encompassing their formation, operating strategies, and management structures.

Business Unit

A segment of a company that operates independently with its own objectives and strategies, often focusing on a specific product line or market.

Decentralize Risk Management

The practice of distributing risk management responsibilities among various units or departments within an organization, rather than centralizing it.