Explore BrainMass

Investment at birth to provide a child with $39,500 at age 21

How many dollars should you need to invest on your's child's birthday in order to provide their child with $39,500 at age 21? Assume the money earns 7.5% compounded quarterly and t-20.

Solution Preview

Assume that you invest at the birth of your child. Then, when s/he is 21 years old, it is ...

Solution Summary

The solution shows the formulas and makes the calculation.