to set up a fund for his son's edu the beginning of every 3 months ounded semi-annually, what amo

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Ethan wants to set up a fund for his son's education such that he could withdraw
$2,982.00 at the beginning of every 3 months for the next 6 years. If the fund can earn
2.80% compounded semi-annually, what amount could he deposit today to provide the
payment?
Round your answer to the nearest cent
Transcribed Image Text:Ethan wants to set up a fund for his son's education such that he could withdraw $2,982.00 at the beginning of every 3 months for the next 6 years. If the fund can earn 2.80% compounded semi-annually, what amount could he deposit today to provide the payment? Round your answer to the nearest cent
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