Juan Reyes 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 Jan1, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide his college education; it is provided that 3,000 shall be withdrawn for this purpose for each year for 5 year starting at the boy's 18th birthday.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|
Juan Reyes 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 Jan1, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide his college education; it is provided that 3,000 shall be withdrawn for this purpose for each year for 5 year starting at the boy's 18th birthday.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|
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
Use 4 decimals places in between process and 2 decimal for the final answer.
Transcribed Image Text:Juan Reyes 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 Jan1, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide
his college education; it is provided that 3,000 shall be withdrawn for this purpose for
each year for 5 year starting at the boy's 18h 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|
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