Savings account to fund her education at that time

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Reference no: EM13987821

Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4% per year, how much do they need to put into the account today to ensure that they will have $100,000 in 6 years?

Reference no: EM13987821

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