You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $11,000 tuition payment is due in six months. After that, the same payment is due every six months until you have made a total of eight payments. The college offers a bank account that allows you to withdraw money every six months and has a fixed APR of 4.1% (with semiannual compounding) guaranteed to remain the same over the next four years. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this account, leaving the account empty when the last payment is made? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount of money you must deposit today is $ (Round to the nearest cent.)
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $11,000 tuition payment is due in six months. After that, the same payment is due every six months until you have made a total of eight payments. The college offers a bank account that allows you to withdraw money every six months and has a fixed APR of 4.1% (with semiannual compounding) guaranteed to remain the same over the next four years. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this account, leaving the account empty when the last payment is made? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount of money you must deposit today is $ (Round to the nearest cent.)
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Transcribed Image Text:You have been accepted into college. The college guarantees that your tuition will not increase for the four years you
attend college. The first $11,000 tuition payment is due in six months. After that, the same payment is due every six
months until you have made a total of eight payments. The college offers a bank account that allows you to withdraw
money every six months and has a fixed APR of 4.1% (with semiannual compounding) guaranteed to remain the
same over the next four years. How much money must you deposit today if you intend to make no further deposits
and would like to make all the tuition payments from this account, leaving the account empty when the last payment
is made? (Note: Be careful not to round any intermediate steps less than six decimal places.)
The amount of money you must deposit today is $
(Round to the nearest cent.)
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