Mr. J. J. Parker is creating a college fund for his daughter. He plans to make 15 yearly payments of $1500 each with the first payment deposited today on his daughterâs first birthday. Assuming his daughter will need four equal withdrawals from this account to pay for her education beginning when she is 18 (i.e. 18, 19, 20, 21), how much will she have on a yearly basis for her college career? J. J. expects to earn a hefty 12% annual return on his investment. (show work)
Mr. J. J. Parker is creating a college fund for his daughter. He plans to make 15 yearly payments of $1500 each with the first payment deposited today on his daughterâs first birthday. Assuming his daughter will need four equal withdrawals from this account to pay for her education beginning when she is 18 (i.e. 18, 19, 20, 21), how much will she have on a yearly basis for her college career? J. J. expects to earn a hefty 12% annual return on his investment. (show work)
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Related questions
| You will deposit $14,000 today. It will grow for 8 years at 10% interest compounded semiannually. You will then withdraw the funds annually over the next 6 years. The annual interest rate is 8%. Your annual withdrawal will be: Use Appendix A and Appendix D. (Round "PV Factor" and "FV Factor" to 3 decimal places.) |
$9,858
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$1,045
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$235,140
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