Assume that you are planning for your child's education. You would like to make deposits every 26 weeks (half year) in Years 0 through 21, with your first deposit to be made today (a total of 43 deposits), so that your child may make withdrawals in each of the Years 18 through 21 for tuition. Tuition is currently $3,000, but is expected to grow at 4% for each of the next 10 years, then at 6% for each of years 11 through 21. If you can earn a stated or nominal annual rate of 8.00 %, but interest is compounded weekly (52-week year), then how much must you deposit every 26 weeks? O $282.76 O $292.40 O $301.31 O $271.99 O $310.43

Assume that you are planning for your child's education. You would like to make deposits every 26 weeks (half year) in Years 0 through 21, with your first deposit to be made today (a total of 43 deposits), so that your child may make withdrawals in each of the Years 18 through 21 for tuition. Tuition is currently $3,000, but is expected to grow at 4% for each of the next 10 years, then at 6% for each of years 11 through 21. If you can earn a stated or nominal annual rate of 8.00 %, but interest is compounded weekly (52-week year), then how much must you deposit every 26 weeks? O $282.76 O $292.40 O $301.31 O $271.99 O $310.43

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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Question - : Your child is going to college for the next 4 years. You are setting up a college fund that your child withdraws from at the BEGINNING of each 6 month period (2 withdrawls each year). Each withdrawl is $ 3000. The account pays 12% annual interest rate, compounded 2 times a year. How much money should you put in the account now?
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