3) An engineer puts $ aside for his newborns college education. She will need 20,000 on her 18, 19, 20 and 21" birthdays. He can make uniform payments now through year 17. (18 payments in all) At 8% interest how much does he need to set aside annually.

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 14E
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3) An engineer puts S aside for his newborns college education. She will need 20,000 on
her 18, 19, 20 and 21" birthdays. He can make uniform payments now through year
17. (18 payments in all) At 8% interest how much does he need to set aside annually.
4) What is the future worth (in year 10), of the following: with an interest rate of 10%
Year
Income
Expense
0
1-7
8
2500
1600
11000
1500
1200
7200
Transcribed Image Text:3) An engineer puts S aside for his newborns college education. She will need 20,000 on her 18, 19, 20 and 21" birthdays. He can make uniform payments now through year 17. (18 payments in all) At 8% interest how much does he need to set aside annually. 4) What is the future worth (in year 10), of the following: with an interest rate of 10% Year Income Expense 0 1-7 8 2500 1600 11000 1500 1200 7200
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