How much does melissa have to invest in a fund today

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Reference no: EM131334560

Melissa Gould wants to invest today to assure adequate funds for her son's college education.

She estimates that her son will need $20,000 at the end of eighteen years, $25,000 at the end of nineteen years, $30,000 at the end of twenty years, and $40,000 at the end of twenty-one years.

How much does Melissa have to invest in a fund today if the fund earns the following interest rate?

a. 6 percent per year with annual compounding

b. 6 percent per year with quarterly compounding

c. 6 percent per year with monthly compounding

Reference no: EM131334560

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