Question

Christina plans to contribute RM1,200 a year to her niece’s college education. Her niece will graduate...

Christina plans to contribute RM1,200 a year to her niece’s college education. Her
niece will graduate from high school in 10 years. If the interest rate is 6%, how
much money does Christina need to save for her by the time she graduates from
high school?

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Answer #1

Answer: RM 15,817

EXPLANATION

Christina plan to contribute RM 1,200 a year to her niece's college education

Her niece will graduate from high school in 10 years

Interest rate is 6 %

Christina need to save for her=

1200(1+0.06)^9+1200(1+0.06)^8+1200(1+0.06)^7+1200(1+0.06)^6+1200(1+0.06)^5+1200(1+0.06)^4+1200(1+0.06)^3+1200(1+0.06)^2+1200(1+0.06)^1+1200(1+0.06)^0

= 2027.32+1912.62+1804.36+1702.22+1605.87+1514.97+1429.22+1348.32+1272+1200

=RM 15,816.95

=RM 15,817 approx

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