Suppose a father on the the day his son is born, wishes to determine what lump amount would have to be paid into an account bearing interest of 12% per year to provide withdrawals of $2000 on each of the son's 18, 19, 20 and 21 birthdays.
Suppose a father on the the day his son is born, wishes to determine what lump amount would have to be paid into an account bearing interest of 12% per year to provide withdrawals of $2000 on each of the son's 18, 19, 20 and 21 birthdays.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose a father on the the day his son is born, wishes to determine
what lump amount would have to be paid into an account bearing
interest of 12% per year to provide withdrawals of $2000 on each
of the son's 18, 19*h, 20** and 21* birthdays.
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