when Yumi turned 17, the fund was worth
11000(1+.055/12)^(12*9) = 18025.08
Now, plug that into your annuity formula, to get annual payments of
M = Pr/(1-(1+r)^(-n))
= 18025.08(1-(1.07)^-4)
= 4273.83
Yumi's grandparents presented her with a gift of $11,000 when she was 8 years old to be used for her college education. Over the next 9 years, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 5.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 years, starting at age 18. If the college fund is expected to earn interest at the rate of 7%/year, compounded annually, what will be the size of each installment?
3 answers
234+323
34243
+2
=69
34243
+2
=69
finite math suxssssss
1 answer