Alicia and Warren plan to send their son to university. To pay for this they will contribute 12 equal yearly payments to an account bearing interest at the APR of 4.5%, compounded annually. Four years after their last contribution, they will begin the first of five, yearly, withdrawals of $39,900 to pay the university's bills. How large must their yearly contributions be?
Alicia and Warren plan to send their son to university. To pay for this they will contribute 12 equal yearly payments to an account bearing interest at the APR of 4.5%, compounded annually. Four years after their last contribution, they will begin the first of five, yearly, withdrawals of $39,900 to pay the university's bills. How large must their yearly contributions be?
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 9.12AMCP
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