Problem 6.72 – Rate of Return for a College Savings Program

Fundamentals of Corporate Finance

Ross, Westerfield, and Jordan

13th Edition

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Difficulty – Hard

Determine the rate of return for a college savings program, where you make a series of annual payments starting on your child's current birthday. After a specific number of years, the plan provides a certain annual amount for a specified duration. Calculate the implied return on this investment.

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