A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter (EOQ) 4 and $30,000 at EOQ 8. He will fund this account by making quarterly payments of $X from EOQ 1 through EOQ 7. If the quarterly percentage rate is 3%, what is the value of $X that must be deposited into the account? O a. 6,789.396 O b. 6,621.507 O c. 6,240.157 O d. 6,082.880 e. 6,123.852

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
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A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter
(EOQ) 4 and $30,000 at EOQ 8. He will fund this account by making quarterly payments of $X
from EOQ 1 through EOQ 7. If the quarterly percentage rate is 3%, what is the value of $X that
must be deposited into the account?
O a. 6,789.396
O b. 6,621.507
O c. 6,240.157
O d. 6,082.880
O e. 6,123.852
Transcribed Image Text:A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter (EOQ) 4 and $30,000 at EOQ 8. He will fund this account by making quarterly payments of $X from EOQ 1 through EOQ 7. If the quarterly percentage rate is 3%, what is the value of $X that must be deposited into the account? O a. 6,789.396 O b. 6,621.507 O c. 6,240.157 O d. 6,082.880 O e. 6,123.852
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