Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $60,000 in 18 years. Assuming an APR of 3.3 % compounded quarterly, how much of the $60,000 will Walter ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to accumulate a future value of $60,000 in 18 years. Assuming an APR of 3.3 % compounded quarterly, how much of the $60,000 will Walter ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
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
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Transcribed Image Text:Question 14-
Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He wishes to
accumulate a future value of $60,000 in 18 years. Assuming an APR of 3.3 % compounded quarterly, how
much of the $60,000 will Walter ultimately deposit in the account, and how much is interest earned?
Round your answers to the nearest cent, if necessary.
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