Your daughter just gave birth to a baby girl. You are going to invest $10,000 to help pay for college, which you expect
Posted: Tue Jan 18, 2022 1:01 pm
Your daughter just gave birth to a baby girl. You are going to
invest $10,000 to help pay for college, which you expect her to
start in 18 years. Your broker offers you two investment choices:
1) a portfolio of technology stocks that is expected to earn an
interest rate of 9%; or 2) a portfolio of industrial stocks that is
expected to earn a rate of 8%. How much larger is the gift (when
she starts college) with the higher interest rate (compared to the
lower rate)?
invest $10,000 to help pay for college, which you expect her to
start in 18 years. Your broker offers you two investment choices:
1) a portfolio of technology stocks that is expected to earn an
interest rate of 9%; or 2) a portfolio of industrial stocks that is
expected to earn a rate of 8%. How much larger is the gift (when
she starts college) with the higher interest rate (compared to the
lower rate)?