Creating college investment fund

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Reference no: EM132004334

1. Mr. Blochirt is creating a college investment fund for his daughter. He will put in $13,000 per year for the next 16 years and expects to earn a 11% annual rate of return. How much money will his daughter have when she starts college? Use Appendix C. (Round "FV Factor" to 3 decimal places.)

A. $498,457

B. $510,197

C. $509,470

D. $497,444

2. You will deposit $12,000 today. It will grow for 10 years at 10% interest compounded semiannually. You will then withdraw the funds annually over the next 8 years. The annual interest rate is 8%. Your annual withdrawal will be: Use Appendix A and Appendix D. (Round "PV Factor" and "FV Factor" to 3 decimal places.)

A. $8,787

B. $5,540

C. $6,795

D. $2,993

Reference no: EM132004334

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