A person donated $110,000 to a university to establish a scholarship fund. What is unusual is that the entire amount came from what the person was able to save each month over 71 years while working at a low-wage job. (a) How much would the person have to put into a savings account at the end of every 3 months to accumulate $110,000 over 71 years? Assume an interest rate of 5.25% compounded quarterly. (b) Answer part (a) using a 3% and a 7% interest rate. (a) The necessary deposit is $ at 5.25%. (Do not round until the final answer. Then round to the nearest cent as needed.)

A person donated $110,000 to a university to establish a scholarship fund. What is unusual is that the entire amount came from what the person was able to save each month over 71 years while working at a low-wage job. (a) How much would the person have to put into a savings account at the end of every 3 months to accumulate $110,000 over 71 years? Assume an interest rate of 5.25% compounded quarterly. (b) Answer part (a) using a 3% and a 7% interest rate. (a) The necessary deposit is $ at 5.25%. (Do not round until the final answer. Then round to the nearest cent as needed.)

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter9: Sequences, Probability And Counting Theory

Section9.4: Series And Their Notations

Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...

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