A father is planning a savings program to put his daughter through college. His daughter is now 13 years old and he anticipates that he needs to save $ 76,383 for tuition, books and board when his daughter begins college. The daughter recently received $ 9,453 from her grandfather's estate which will also be used to help meet the cost of her education. Assume the father wishes to make 5 equal deposits to a money market account paying 8 percent interest compounded annually. He will make his first deposit one year from today and his last deposit the day she starts college. What will his annual deposits be?
A father is planning a savings program to put his daughter through college. His daughter is now 13 years old and he anticipates that he needs to save $ 76,383 for tuition, books and board when his daughter begins college. The daughter recently received $ 9,453 from her grandfather's estate which will also be used to help meet the cost of her education. Assume the father wishes to make 5 equal deposits to a money market account paying 8 percent interest compounded annually. He will make his first deposit one year from today and his last deposit the day she starts college. What will his annual deposits be?
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 father is planning a savings program to put his daughter through college. His daughter is now 13 years old and he anticipates that he needs to save $ 76,383 for tuition, books and board when his daughter begins college. The daughter recently received $ 9,453 from her grandfather's estate which will also be used to help meet the cost of her education. Assume the father wishes to make 5 equal deposits to a money market account paying 8 percent interest compounded annually. He will make his first deposit one year from today and his last deposit the day she starts college. What will his annual deposits be?
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