A family wants to have a $130,000 college fund for their children at the end of 19 years. What contribution must be made at the end of each quarter if their investment pays 7.7%, compounded quarterly? (a) State whether the problem relates to an ordinary annuity or an annuity due ordinary annuity annuty due (b) Solve the problem. (Round your answer to the nearest cent)
A family wants to have a $130,000 college fund for their children at the end of 19 years. What contribution must be made at the end of each quarter if their investment pays 7.7%, compounded quarterly? (a) State whether the problem relates to an ordinary annuity or an annuity due ordinary annuity annuty due (b) Solve the problem. (Round your answer to the nearest cent)
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 13E
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Subject: finance
![A family wants to have a $130,000 college fund for their children at the end of 19 years. What contribution must be made at the end of each quarter if their investment pays 7.7%, compounded quarterly?
(a) State whether the problem relates to an ordinary annuity or an annuity due.
ordinary annuity
annuity due
(b) Solve the problem. [Round your answer to the nearest cent)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2Fa3c11740-26cb-47a3-a45e-4452f6967a98%2Fthg0z7c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A family wants to have a $130,000 college fund for their children at the end of 19 years. What contribution must be made at the end of each quarter if their investment pays 7.7%, compounded quarterly?
(a) State whether the problem relates to an ordinary annuity or an annuity due.
ordinary annuity
annuity due
(b) Solve the problem. [Round your answer to the nearest cent)
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