New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 7.8% compounded annually? (Round your answers to two decimal places.) $  How much interest would they earn over the life of the account? $  Determine the value of the fund after 10 years. $  How much interest was earned during the 10th year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 7.8% compounded annually? (Round your answers to two decimal places.)


How much interest would they earn over the life of the account?


Determine the value of the fund after 10 years.


How much interest was earned during the 10th year?

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