A father has saved money in a fund to finance his son's 4-year university program. The fund pays out 300$ every month at the beginning of each month for 8 months (September through April) plus an extra 2.000$ each September 1st for 4 years. At j4 = 8%, what is the value of the fund on the first day of university, before any withdrawals?
A father has saved money in a fund to finance his son's 4-year university program. The fund pays out 300$ every month at the beginning of each month for 8 months (September through April) plus an extra 2.000$ each September 1st for 4 years. At j4 = 8%, what is the value of the fund on the first day of university, before any withdrawals?
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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Transcribed Image Text:A father has saved money in a fund to finance
his son's 4-year university program. The fund
pays out 300$ every month at the beginning of
each month for 8 months (September through
April) plus an extra 2.000$ each September 1st
for 4 years. At j4 = 8%, what is the value of the
fund on the first day of university, before any
withdrawals?
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