Alicia and Warren plan to send their son to university. To pay for this they will contribute 12 equal yearly payments to an account bearing interest at the APR of 4.5%, compounded annually. Four years after their last contribution, they will begin the first of five, yearly, withdrawals of $39,900 to pay the university's bills. How large must their yearly contributions be?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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Alicia and Warren plan to send their son to university. To pay for this they will contribute 12 equal
yearly payments to an account bearing interest at the APR of 4.5%, compounded annually. Four
years after their last contribution, they will begin the first of five, yearly, withdrawals of $39,900 to
pay the university's bills. How large must their yearly contributions be?
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Transcribed Image Text:CO %24 %24 Alicia and Warren plan to send their son to university. To pay for this they will contribute 12 equal yearly payments to an account bearing interest at the APR of 4.5%, compounded annually. Four years after their last contribution, they will begin the first of five, yearly, withdrawals of $39,900 to pay the university's bills. How large must their yearly contributions be? Submit Question Type here to search # 直0 2) a. 13 %23 2. tab caps lock alt
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