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Mr Chan’s son is three years old now and will be going to college in 15...

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Finance

Mr Chan’s son is three years old now and will be going tocollege in 15 years. Mr Chan would like to have $625,000 in asavings account to fund his education at that time. If the accountpromises to pay a fixed interest rate of 3% per year, how muchmoney does Mr Chan need to put in the account today to ensure thathe will have $625,000 in 15 years?

Answer & Explanation Solved by verified expert
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Solution The formula for calculating the future value of an Investment with compound Interest is FV P 1 rn n t Where FV Future    See Answer
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