Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 5%, compounded monthly, if they want the balance to be $200,000 at the end of 18 years? Solve the problem. (Round your answer to the nearest cent.)
Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 5%, compounded monthly, if they want the balance to be $200,000 at the end of 18 years? Solve the problem. (Round your answer to the nearest cent.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
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Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 5%, compounded monthly, if they want the balance to be $200,000 at the end of 18 years?
Solve the problem. (Round your answer to the nearest cent.)
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