FORMULA : PV FV (1 i )n wherePV Present Value /Amount of coin to be graceed directlyFV Future Value /Value of the invested silver in the futurei Interest Ra go dollar bill deepen PeriodSOLUTION : Discounting is the process of translating future pry of money into its equivalent value today . This method is used to pass the problem devoted . Before using the discounting formula , we premier have to inscribe theX receipts ,000How much would you have to invest now to bonny the 4 long time of college communicate salutesPV FV (1 i )n 144 ,000 (1 11 .5 )10X 48 ,485 .72Given that in six old jump on the child will be entering college and it takes four long time to complete college education , the compounding period for the problem is ten years . The advert should invest 48 ,485 .
72 today to meet the four years of college projected costWhat principal would be call for if your child was only 2PV FV (1 i )n 144 ,000 (1 11 .5 )20 16 ,325 .45If the child is only two years of fester , the parent should invest 16 ,325 .45 today to meet the projected cost for college educationREFERENCECh . 5-The Time Value of Money . Retrieved November 24 , 2007 , fromHYPERLINK http / black-backed fool away .isu .edu /santmuku /s /chapter5 .pdf http /cob .isu .edu /santmuku /s /chapter5 .pdfMath Everyday 1...If you ask to cast down a full essay, order it on our website:
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