(solution) Your daughter is currently eight years old. You anticipate that she will be going to college in 10years

(solution) Your daughter is currently eight years old. You anticipate that she will be going to college in 10years

Your daughter is currently eight years old. You anticipate that she will be going to college in 10years. You would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3% per year, how much money do you need to put into the account today to ensure that you will have $100,000 in 10 years?