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What is the interest rate needed for child's education in 18 years with $50,000 to invest?

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Assume the total cost of an education will be $320,00 when your child enters college in 18 years. You presently have $50,000 to invest. What annual rate on interest must you earn on your investment to cover the cost of your child's college education?

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Solution Summary

The solution explains how to determine the interest rate needed to get a desired future value with calculations.

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We are given the future value that we need which is $320,000. We are also given the present value, the amount that we have how which is $50,000. We have ...

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