a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000 in 9 years before he begins college, to help pay for his college tuition. They plan to save the money by making deposits every month into a savings account that earns 6.3% per year compounded monthly. How much are their regular monthly deposits? b) How much interest will Dylans parents earn on the account?
a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000 in 9 years before he begins college, to help pay for his college tuition. They plan to save the money by making deposits every month into a savings account that earns 6.3% per year compounded monthly. How much are their regular monthly deposits? b) How much interest will Dylans parents earn on the account?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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a) Dylan will start start college in 9 years. Dylans parents want to save a total amount of $32 000 in 9 years before he begins college, to help pay for his college tuition. They plan to save the money by making deposits every month into a savings account that earns 6.3% per year compounded monthly. How much are their regular monthly deposits?
b) How much interest will Dylans parents earn on the account?
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