If You Wish to Accumulate $200,000 in the Child's College

question 74

Short Answer

If you wish to accumulate $200,000 in the child's college fund after 18 years,and can invest at a 7.5% annual rate,how much must you invest at the end of each year if the first deposit is made at the end of the first year?

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Definitions:

European Monetary Union

A coalition of European countries that have adopted a standardized legal tender, the euro, and have a unified monetary policy managed by the European Central Bank.

Domestically

Pertains to activities or production occurring within a country's borders, as opposed to internationally.

Import

Items or services imported from one nation to another for the purpose of selling.

Adam Smith

An 18th-century Scottish economist and philosopher regarded as the father of modern economics, known for his work on free markets and the division of labor.