The Mellows have decided to invest in a college fund for their young son. They invested $30,000 in a deferred annuity that will pay their son at the beginning of every month for 4 years, while he goes to college. If the account earns 3.00% compounded monthly and the annuity payments are deferred for 14 years, what will be the size of the monthly payments?

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
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The Mellows have decided to invest in a college fund for their young son. They
invested $30,000 in a deferred annuity that will pay their son at the beginning
of every month for 4 years, while he goes to college. If the account earns
3.00% compounded monthly and the annuity payments are deferred for 14
years, what will be the size of the monthly payments?
Round to the nearest cent
Transcribed Image Text:The Mellows have decided to invest in a college fund for their young son. They invested $30,000 in a deferred annuity that will pay their son at the beginning of every month for 4 years, while he goes to college. If the account earns 3.00% compounded monthly and the annuity payments are deferred for 14 years, what will be the size of the monthly payments? Round to the nearest cent
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