Tishie invests $3,000 today at a 9% rate of return. She wants to have $24,000 to give to her granddaughter Kathy for college 16 years from now. Which one of the following statements is
Correct concerning Tishie's situation?
A) Tishie will have the $24,000 when she wants it.
B) Tishie would have to wait an additional ten years to have $24,000.
C) Tishie would have to earn a 10% rate of return to have $24,000 in 16 years.
D) Tishie will only have approximately $12,000 sixteen years from now.
E) Tishie should plan on only giving Kathy $10,000 in sixteen years.

Question

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The Answer of Tishie invests $3,000 today at a 9% rate of return. She wants to have $24,000 to give to her granddaughter Kathy for college 16 years from now. Which one of the following statements is
Correct concerning Tishie's situation?
A) Tishie will have the $24,000 when she wants it.
B) Tishie would have to wait an additional ten years to have $24,000.
C) Tishie would have to earn a 10% rate of return to have $24,000 in 16 years.
D) Tishie will only have approximately $12,000 sixteen years from now.
E) Tishie should plan on only giving Kathy $10,000 in sixteen years.

Tishie Invests $3,000 Today at a 9% Rate of Return