On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw 200,000 from the fund on his 18th birthday, again on his 19th birthday, again on his 20th birthday, and again on his 21st birthday. If the fund earns interest at 9% per year, compounded annually, how much should the father deposit at the end of each year, up through the 17th year? Draw cash flow diagram
On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw 200,000 from the fund on his 18th birthday, again on his 19th birthday, again on his 20th birthday, and again on his 21st birthday. If the fund earns interest at 9% per year, compounded annually, how much should the father deposit at the end of each year, up through the 17th year? Draw cash flow diagram
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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On the day his son was born, a father decided to establish a fund for his son's college education.
The father wants the son to be able to withdraw 200,000 from the fund on his 18th birthday, again
on his 19th birthday, again on his 20th birthday, and again on his 21st birthday. If the fund earns
interest at 9% per year, compounded annually, how much should the father deposit at the end of
each year, up through the 17th year? Draw cash flow diagram
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