Alvin Yu was born on January 1, 1988. On Jan. 1 1989, his father starts a fund that is intended to help him in two ways. The fund is to be established by a payment of 2,000 on Janl, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide for his college education; it is provided that 3,000 shall be withdrawn for this purpose each year for 5 year starting at the boy's 18th birthday. The remainder of the fund is accumulated until Juan is 30 yrs. old and is to be paid to him to help him purchase a house. If the fund earns 10%, how much will be paid to Juan on his 30th birthday? DRAW THE CASH FLOW DIAGRAM.

Alvin Yu was born on January 1, 1988. On Jan. 1 1989, his father starts a fund that is intended to help him in two ways. The fund is to be established by a payment of 2,000 on Janl, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide for his college education; it is provided that 3,000 shall be withdrawn for this purpose each year for 5 year starting at the boy's 18th birthday. The remainder of the fund is accumulated until Juan is 30 yrs. old and is to be paid to him to help him purchase a house. If the fund earns 10%, how much will be paid to Juan on his 30th birthday? DRAW THE CASH FLOW DIAGRAM.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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