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Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she enters college (17 years from now). If her tuition is projected to be $30,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%? Click the icon to view the table. The annual sinking fund payment is S. (Round to the nearest cent as Data table $1.00 Sinking Fund Payments Rate per period - X

Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she enters college (17 years from now). If her tuition is projected to be $30,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%? Click the icon to view the table. The annual sinking fund payment is S. (Round to the nearest cent as Data table $1.00 Sinking Fund Payments Rate per period - X

Essentials Of Investments
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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Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she enters college (17 years from now). If her tuition is projected to be $30,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%? Click the icon to view the table. The annual sinking fund payment is $. (Round to the nearest cent as Data table $1.00 Sinking Fund Payments 8% 1 2 3 Rate per period Periods 1% 2% 3% 4% 6% 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 0.4975124 0.4950495 0.4926108 0.4901961 0.4854369 0.4807692 0.3300221 0.3267547 0.3235304 0.3203485 0.3141098 0.3080335 0.2462811 0.2426238 0.2390270 0.2354900 0.2285915 0.2219208 0.1960398 0.1921584 0.1883546 0.1846271 0.1773964 0.1704565 0.1625484 0.1585258 0.1545975 0.1507619 0.1433626 0.1363154 0.1386283 0.1345120 0.1305064 0.1266096 0.1191350 0.1120724 0.1206903 0.1165098 0.1124564 0.1085278 0.1010359 0.0940148 0.1067404 0.1025154 0.0984339 0.0944930 0.0870222 0.0800797 0.0955821 0.0913265 0.0872305 0.0832909 0.0758680 0.0690295 0.0864541 0.0821779 0.0780774 0.0741490 0.0667929 0.0600763 0.0788488 0.0745596 0.0704621 0.0665522 0.0592770 0.0526950 4 5 6 7 8 9 10 11 12 - X
Transcribed Image Text:Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she enters college (17 years from now). If her tuition is projected to be $30,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%? Click the icon to view the table. The annual sinking fund payment is $. (Round to the nearest cent as Data table $1.00 Sinking Fund Payments 8% 1 2 3 Rate per period Periods 1% 2% 3% 4% 6% 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 1.0000000 0.4975124 0.4950495 0.4926108 0.4901961 0.4854369 0.4807692 0.3300221 0.3267547 0.3235304 0.3203485 0.3141098 0.3080335 0.2462811 0.2426238 0.2390270 0.2354900 0.2285915 0.2219208 0.1960398 0.1921584 0.1883546 0.1846271 0.1773964 0.1704565 0.1625484 0.1585258 0.1545975 0.1507619 0.1433626 0.1363154 0.1386283 0.1345120 0.1305064 0.1266096 0.1191350 0.1120724 0.1206903 0.1165098 0.1124564 0.1085278 0.1010359 0.0940148 0.1067404 0.1025154 0.0984339 0.0944930 0.0870222 0.0800797 0.0955821 0.0913265 0.0872305 0.0832909 0.0758680 0.0690295 0.0864541 0.0821779 0.0780774 0.0741490 0.0667929 0.0600763 0.0788488 0.0745596 0.0704621 0.0665522 0.0592770 0.0526950 4 5 6 7 8 9 10 11 12 - X
13 0.0724148 0.0681184 0.0670295 0.0601437 0.0529601 0.0465218 14 0.0669012 0.0626020 0.0585263 0.0546690 0.0475849 0.0412969 15 0.0621238 0.0578255 0.0537666 0.0499411 0.0429628 0.0368295 16 0.0579446 0.0536501 0.0496108 0.0458200 0.0389521 0.0329769 17 0.0542581 0.0499698 0.0459525 0.0421985 0.0354448 0.0296294 18 0.0509820 0.0467021 0.0427087 0.0389933 0.0323565 0.0267021 19 0.0480518 0.0437818 0.0398139 0.0361386 0.0296209 0.0241276 20 0.0454153 0.0411567 0.0372157 0.0335818 0.0271846 0.0218522 25 0.0354068 0.0312204 0.0274279 0.0240120 0.0182267 0.0136788 30 0.0287481 0.0246499 0.0210193 0.0178301 0.0126489 0.0088274 40 0.0204556 0.0165558 0.0132624 0.0105235 0.0064615 0.0038602 50 0.0155127 0.0118232 0.0088655 0.0065502 0.0034443 0.0017429
Transcribed Image Text:13 0.0724148 0.0681184 0.0670295 0.0601437 0.0529601 0.0465218 14 0.0669012 0.0626020 0.0585263 0.0546690 0.0475849 0.0412969 15 0.0621238 0.0578255 0.0537666 0.0499411 0.0429628 0.0368295 16 0.0579446 0.0536501 0.0496108 0.0458200 0.0389521 0.0329769 17 0.0542581 0.0499698 0.0459525 0.0421985 0.0354448 0.0296294 18 0.0509820 0.0467021 0.0427087 0.0389933 0.0323565 0.0267021 19 0.0480518 0.0437818 0.0398139 0.0361386 0.0296209 0.0241276 20 0.0454153 0.0411567 0.0372157 0.0335818 0.0271846 0.0218522 25 0.0354068 0.0312204 0.0274279 0.0240120 0.0182267 0.0136788 30 0.0287481 0.0246499 0.0210193 0.0178301 0.0126489 0.0088274 40 0.0204556 0.0165558 0.0132624 0.0105235 0.0064615 0.0038602 50 0.0155127 0.0118232 0.0088655 0.0065502 0.0034443 0.0017429
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