1. Parents decide to start saving money for college education with a $1000 initialinvestment and in 3 months start to make quarterly deposits of $700. If the accountpays 4.75% quarterly, how much will the account be worth after 64 deposits.

Present value = 1,000 quarterly deposit = 700 total deposits = 700 annual rate = 4.75% Quarterly…

Answered: Parents decide to start saving money…

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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Parents decide to start saving money for college education with a $1000 initial investment and in 3 months start to make quarterly deposits of $700. If the account pays 4.75% quarterly, how much will the account be worth after 64 deposits.