Yumi's grandparents presented her with a gift of $19,000 when she was nine years old to be used for her college education. Over the next eight years, until she turned 17, Yumi's parents invested her money in a tax-free account that yielded interest at the rate of 2.5 %/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next four years, starting at age 18. If the college fund is expected to earn interest at the rate of 3 %/year, compounded annually, what will be the size of each installment? (Assume no interest is accrued from the point she turns 17 until she makes the first withdrawal. Round your answer to the nearest cent.) $
Yumi's grandparents presented her with a gift of $19,000 when she was nine years old to be used for her college education. Over the next eight years, until she turned 17, Yumi's parents invested her money in a tax-free account that yielded interest at the rate of 2.5 %/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next four years, starting at age 18. If the college fund is expected to earn interest at the rate of 3 %/year, compounded annually, what will be the size of each installment? (Assume no interest is accrued from the point she turns 17 until she makes the first withdrawal. Round your answer to the nearest cent.)
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