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)
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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Subject: finance
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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