**Business / Finance | Q&A Library**### Elena's son will enter college 16 years from now. At that time, she would like to have $20,000 available for college expenses.#### QuestionElena's son will enter college 16 years from now. At that time, she would like to have $20,000 available for college expenses. For that purpose, her bank will set up an account that pays 7% interest compounded quarterly. If she makes payments into the account at the end of each quarter, what must Elena's payments be to achieve her goal?#### Expert Answer**Step 1**

Future Value of Annuity: It represents the future worth of the present annuity payments and is…

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pay 7% compounded. If she makes pa of each quarter, what must Elena's payments to be achieve her goal

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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**Business / Finance | Q&A Library**

### Elena's son will enter college 16 years from now. At that time, she would like to have $20,000 available for college expenses.

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Elena's son will enter college 16 years from now. At that time, she would like to have $20,000 available for college expenses. For that purpose, her bank will set up an account that pays 7% interest compounded quarterly. If she makes payments into the account at the end of each quarter, what must Elena's payments be to achieve her goal?

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