Asked by Thara!
When Raisel's son was born, she put $7,500 in an investment that earns 5.25% compounded quarterly. This investment will mature when her son turns 18 and will go straight into an annuity at 7.25% compounded and paying out monthly at the end of the period. The investment was to help pay for his 4-years of college. Find the size of these monthly payments received by Raisel's son during his college stay.
Answers
Answered by
Reiny
just change the appropriate numbers in the posting
http://www.jiskha.com/display.cgi?id=1270952022
They are the same question.
http://www.jiskha.com/display.cgi?id=1270952022
They are the same question.
Answered by
Thara!
at age 18:
the amount of the investment = the present value of the annuity
6500(1.019375)^72 = x(1-0.0725/12^-48)/(0.0450/4)
19,177.84 = x(41.55860953)
x=461.46
is dis correct!!!
Answered by
Thara!
oh no...i mixed the queston
sry...ill try again!! oops
sry...ill try again!! oops
Answered by
Thara!
7500(1.013125)^72 = x(1-.0725/12^-48)/(.0725/12
19177.84 = x(41.55860953)
461.46 = x
is dis correct??
19177.84 = x(41.55860953)
461.46 = x
is dis correct??
Answered by
Reiny
I got the same result to the penny!
good job!
good job!