You would like to have $6,000 in four years for a special vacation following graduation bymaking deposits at the end of every three months in an annuity that pays 7% compounded quarterly. a. How much do you deposit at the end of every three months?b. How much of the $6,000 comes from deposits and how much comes from interest?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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You would like to have $6,000 in four years for a special vacation following graduation by
making deposits at the end of every three months in an annuity that pays 7% compounded quarterly. 
a. How much do you deposit at the end of every three months?
b. How much of the $6,000 comes from deposits and how much comes from interest?

 

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