You purchased your house through a contract for deed.  In addition to regular monthly payments, you will need to make a balloon payment (large single payment) of $29,367.71 in 10 years. To prepare for this balloon payment, you will make annual payments into a fund paying 3%.  How much should each annual payment be in order to satisfy the balloon payment when it is due?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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You purchased your house through a contract for deed.  In addition to regular monthly payments, you will need to make a balloon payment (large single payment) of $29,367.71 in 10 years. To prepare for this balloon payment, you will make annual payments into a fund paying 3%.  How much should each annual payment be in order to satisfy the balloon payment when it is due?

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