Amy is 12 years old now and will attend college at age 18, Ask an Expert

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Amy is 12 years old now and will attend college at age 18. Her parents plan to fund her college for four years. College costs $20,000 per year today. If her parents have saved $10,000 for this goal. Assume they can invest for 10% per year and inflation is 3.5% per year compounding annually.

What is the future value of what Amy's parents currently save?

A) $10,000

B) $14,411.70

C) $14823.30

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91731709

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