Two years ago my daughter was born. On the day she was born I put $3000 into an account for her. The account earned 4.5% annually. That rate of return on the account will be fixed until she turns 10, at which point I will transfer whatever is in that account into a new one which is expected to earn 8% per year, and then l'll leave that money in that account until her 18th birthday. I plan to take her to Italy to visit her nona when she turns 16. I expect that trip to cost $5000 and I intend to withdraw that amount from the account. How much will be left for her on her 18th birthday (within $5 of the solution below)? Note: I used equations rather than factor tables for my solution. 2791.31 2781.31 O 2771.31 O 2761.31 None of the above

Two years ago my daughter was born. On the day she was born I put $3000 into an account for her. The account earned 4.5% annually. That rate of return on the account will be fixed until she turns 10, at which point I will transfer whatever is in that account into a new one which is expected to earn 8% per year, and then l'll leave that money in that account until her 18th birthday. I plan to take her to Italy to visit her nona when she turns 16. I expect that trip to cost $5000 and I intend to withdraw that amount from the account. How much will be left for her on her 18th birthday (within $5 of the solution below)? Note: I used equations rather than factor tables for my solution. 2791.31 2781.31 O 2771.31 O 2761.31 None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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