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What must rate of return be to cover your child education

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Question -

i. Would you be willing to pay $500 today in exchange for $10,000 in 30 years? What would be the key considerations in answering this question? Would your answer depend on if this arrangement was made with the Government of Canada or a fellow classmate at Humber College.

ii. You just got married and are planning to have children. You plan on sending your children to Humber College 18 years from now. The cost of college tuition is $300,000 and you have $65,000 to invest right now. What must your rate of return be to cover your child's education?

iii. Your best friend from Humber College has $10,000 to invest and wants to know how long it will take to double her money at 6.5%.

Reference no: EM133008557

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