Assume That Your Parents Wanted To Have 100 000 Saved For University By Your 18th Birthday And They Started Saving On Y 1 (143.73 KiB) Viewed 57 times
Assume that your parents wanted to have $100 000 saved for university by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 6.5% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take four years instead of three to graduate and decide to have $150 000 saved just in case, how much would they have to save each year to reach their new goal?
You graduate and get a $2 000 cheque from your grandparents. You decide to save it toward a down payment on a house. You invest it earning 9% per year and you think you will need to have $4 000 saved for the down payment. How long will it be before the $2 000 has grown to $4 000 ? To double the money you received from your grandparents, it will take years. (Round to one decimal place.)
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!