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A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $ 349500 x (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $31,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals

A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $ 349500 x (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $31,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals

Essentials Of Investments
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
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34. 35. DETAILS Need Help? $ Read It PREVIOUS ANSWERS A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $349500 DETAILS HARMATHAP12 6.4.043. (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $31,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals Need Help? Read It MY NOTES HARMATHAP12 6.4.054. ASK YOUR TEACHER MY NOTES PRACTICE ANOTHER ASK YOUR TEACHER A couple received a $128,000 inheritance the year they turned 50 and invested it in a fund that earns 7.9% compounded semiannually. If this amount is deferred for 12 years (until they retire), how much will it provide at the end of each half year (in dollars) for the next 20 years after they retire? (Round your answer to two decimal places.) PRACTICE ANOTHER
Transcribed Image Text:34. 35. DETAILS Need Help? $ Read It PREVIOUS ANSWERS A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $349500 DETAILS HARMATHAP12 6.4.043. (b) Suppose 8 years after beginning the annuity payments, they receive an inheritance of $31,000 that they contribute to the account, and they continue to make their regular payments as found in part (a). How many college withdrawals will they be able to make before the account balance is $0? (Round your answer to the nearest whole number.) withdrawals Need Help? Read It MY NOTES HARMATHAP12 6.4.054. ASK YOUR TEACHER MY NOTES PRACTICE ANOTHER ASK YOUR TEACHER A couple received a $128,000 inheritance the year they turned 50 and invested it in a fund that earns 7.9% compounded semiannually. If this amount is deferred for 12 years (until they retire), how much will it provide at the end of each half year (in dollars) for the next 20 years after they retire? (Round your answer to two decimal places.) PRACTICE ANOTHER
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