You are planning for your child's education. You would like to make deposits every 26 weeks (half year) in Years 0 through 21, with your first deposit to be made today (a total of 43 deposits), so that your child may make withdrawals in each of the Years 18 through 21 for tuition. Tuition is currently $2,900/year, and is expected to grow at 4% for each of the next 10 years, and then at 5% for each of years 11 through 21. You can earn a nominal annual rate of 8.632%, with interest compounded weekly (52-week year) in a college savings account. How much must you deposit every 26 weeks? $245.56 $219.25 $236.79 $254.33 $228.02

You are planning for your child's education. You would like to make deposits every 26 weeks (half year) in Years 0 through 21, with your first deposit to be made today (a total of 43 deposits), so that your child may make withdrawals in each of the Years 18 through 21 for tuition. Tuition is currently $2,900/year, and is expected to grow at 4% for each of the next 10 years, and then at 5% for each of years 11 through 21. You can earn a nominal annual rate of 8.632%, with interest compounded weekly (52-week year) in a college savings account. How much must you deposit every 26 weeks? $245.56 $219.25 $236.79 $254.33 $228.02

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 33P

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