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QUESTION 2 - Show formulas and calculations A babys grandparents want to set...

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Finance

QUESTION 2 - Show formulas and calculations

A babys grandparents want to set up an Education Savings Plan when shes born.

They want their investment to be worth $40,000 by the time the child is 18 years old.

They will invest in a GIC (Guaranteed Investment Certificate) that earns 3.5% interest per annum, compounded quarterly.

How much do they have to invest when the baby is born to reach their goal?image

PART 2 - Compound Interest on a lump sum 14 QUESTION 2 - Show formulas and calculations A baby's grandparents want to set up an Education Savings Plan when she's born. They want their investment to be worth $40,000 by the time the child is 18 years old. They will invest in a GIC (Guaranteed Investment Certificate) that earns 3.5% interest per annum, compounded quarterly. How much do they have to invest when the baby is born to reach their goal? Submit

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