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A father wants to set up a bank account that will pay his daughter $18,000 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 the present (time zero) through EOQ 7. a. Draw a cash-flow diagram from the father's viewpoint. b. If the quarterly percentage rate is (form number%), what is the value $X that must be deposited into the account?

A father wants to set up a bank account that will pay his daughter $18,000 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 the present (time zero) through EOQ 7. a. Draw a cash-flow diagram from the father's viewpoint. b. If the quarterly percentage rate is (form number%), what is the value $X that must be deposited into the account?

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A father wants to set up a bank account that will pay his daughter $18,000 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 the present (time zero) through EOQ 7. a. Draw a cash-flow diagram from the father's viewpoint. b. If the quarterly percentage rate is (form number%), what is the value $X that must be deposited into the account?
Transcribed Image Text:A father wants to set up a bank account that will pay his daughter $18,000 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 the present (time zero) through EOQ 7. a. Draw a cash-flow diagram from the father's viewpoint. b. If the quarterly percentage rate is (form number%), what is the value $X that must be deposited into the account?
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