A family wants to have a $220,000 college fund for their children at the end of 16 years. What contribution must be made at the end of each quarter if their investment pays 7.4%, compounded quarterly? (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity annuity due (b) Solve the problem. (Round your answer to the nearest cent.)

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A:

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Q: What principal must be deposited

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A: The calculation is: