plz solve it within 30-40 mins I'll give you multiple upvote 8. When she was 6 years old, Jane's parentsset up an annuity for her college education,with the first payment deferred for 12 yearsuntil she reached the age of 18. The annuity,rated at 6%, compounded semi-annually,will pay $8,000 at the end of every 6 monthsfor the 4 year period of her collegeeducation.a) Find the number of payment periods(N)b. Find the number of defermentperiods (k)c) Find the Present Value of thisannuity, i.e., what lump sum paymentmust Jane's parents invest (at t = 0 ) tostart the account [Find A(N,k)]

Deferment 12 Interest rate 0.06 compounding 2 Semi-annual payment 8,000

Answered: 8. When she was 6 years old, Jane's |…

8. When she was 6 years old, Jane's | set up an annuity for her college educ with the first payment deferred for 12 until she reached the age of 18. The a

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

plz solve it within 30-40 mins I'll give you multiple upvote

8. When she was 6 years old, Jane's parents
set up an annuity for her college education,
with the first payment deferred for 12 years
until she reached the age of 18. The annuity,
rated at 6%, compounded semi-annually,
will pay $8,000 at the end of every 6 months
for the 4 year period of her college
education.
a) Find the number of payment periods
(N)
b. Find the number of deferment
periods (k)
c) Find the Present Value of this
annuity, i.e., what lump sum payment
must Jane's parents invest (at t = 0 ) to
start the account [Find A(N,k)]

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