young couple wants to have a college fund that will pay birr 30,000 at the end of each half-year for 10 years. (a).If they can invest at 12%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years in order to begin making their college withdrawals 6 months after their last investment? Suppose 10 years after beginning the annuity payments, they receive an inheritance of birr 60,000 that they contribute to the account, and they continue to make their regular payments as found in part (b)How many college withdrawals will they be able to make before the account balance is 0?
young couple wants to have a college fund that will pay birr 30,000 at the end of each half-year for 10 years. (a).If they can invest at 12%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years in order to begin making their college withdrawals 6 months after their last investment? Suppose 10 years after beginning the annuity payments, they receive an inheritance of birr 60,000 that they contribute to the account, and they continue to make their regular payments as found in part (b)How many college withdrawals will they be able to make before the account balance is 0?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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young couple wants to have a college fund that will pay birr 30,000 at the end of each half-year for 10 years.
(a).If they can invest at 12%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years in order to begin making their college withdrawals 6 months after their last investment?
Suppose 10 years after beginning the
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