What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it will grow to $70,000 for their son's college fund in 13 years? (Round your answer to the nearest cent.)$ Jake Werkheiser decides to invest $8000 in an IRA at the end of each year for the next 6 years. If he makes these investments, and if the certificates pay 8%, compounded annually, how much will he have at the end of the 6 years? (Round your answer to the nearest cent.)$X

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What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it will grow to $70,000 for their son's college fund in 13 years? (Round your answer to the nearest cent.) $

What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it will grow to $70,000 for their son's college fund in 13 years? (Round your answer to the nearest cent.) $

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

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What lump sum do parents need to deposit in an account earning 10%, compounded monthly, so that it will grow to $70,000 for their son's college fund in 13 years? (Round your answer to the nearest cent.)
$

Jake Werkheiser decides to invest $8000 in an IRA at the end of each year for the next 6 years. If he makes these investments, and if the certificates pay 8%, compounded annually, how much will he have at the end of the 6 years? (Round your answer to the nearest cent.)
$
X

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