Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years and believes that she can earn 12% per year. Caroline believes Kayla is overly optimistic about her earning ability and believes Kayla can only earn 6% per year. What is the difference in the amount Kayla must deposit if Caroline is correct to have $100,000 upon graduation? O She must invvest $19,800 more today if Caroline is correct O She mus invest $19,800 less today if Caroline is correct O She must invest $12,700 more today if Caroline is correct O It does not change the amount she must invest
Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years and believes that she can earn 12% per year. Caroline believes Kayla is overly optimistic about her earning ability and believes Kayla can only earn 6% per year. What is the difference in the amount Kayla must deposit if Caroline is correct to have $100,000 upon graduation? O She must invvest $19,800 more today if Caroline is correct O She mus invest $19,800 less today if Caroline is correct O She must invest $12,700 more today if Caroline is correct O It does not change the amount she must invest
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 9FPE
Related questions
Question
![Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years and
believes that she can earn 12% per year. Caroline believes Kayla is overly optimistic about her
earning ability and believes Kayla can only earn 6% per year. What is the difference in the amount
Kayla must deposit if Caroline is correct to have $100,000 upon graduation?
O She must invvest $19,800 more today if Caroline is correct
O She mus invest $19,800 less today if Caroline is correct
O She must invest $12,700 more today if Caroline is correct
O It does not change the amount she must invest](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe69671d7-51e7-441c-ad8b-34666d9b1a25%2F629baff8-48f8-42d9-811f-e01e7737e309%2Fsa0lqzc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kayla wants to have $100,000 saved when she graduates. She plans to graduate in 6 years and
believes that she can earn 12% per year. Caroline believes Kayla is overly optimistic about her
earning ability and believes Kayla can only earn 6% per year. What is the difference in the amount
Kayla must deposit if Caroline is correct to have $100,000 upon graduation?
O She must invvest $19,800 more today if Caroline is correct
O She mus invest $19,800 less today if Caroline is correct
O She must invest $12,700 more today if Caroline is correct
O It does not change the amount she must invest
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