Question: your father intends to open a variable rate deposit account...
Question details
Your father intends to open a variable rate deposit account for you that you can withdraw $60,000 in the next 9 years to fulfill your study fee. The variable rate in 9 years is given in the table below:
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | |
| Variable rate | 3% | 4% | 7% | 5% | 6% | 10% | 9% | 8% | 6% |
How much should your father deposit today?
Solution by an expert tutor
