Joe plans to set aside money for his young daughter's college tuition. He will deposit money in an ordinary annuity that earns 4.8% interest, compounded quarterly. Deposits will be made at the end of each quarter. How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $72,000 after 14 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. $ X S 00 E ▷ 4
Joe plans to set aside money for his young daughter's college tuition. He will deposit money in an ordinary annuity that earns 4.8% interest, compounded quarterly. Deposits will be made at the end of each quarter. How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $72,000 after 14 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. $ X S 00 E ▷ 4
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 28P
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Question
Transcribed Image Text:Joe plans to set aside money for his young daughter's college tuition. He
will deposit money in an ordinary annuity that earns 4.8% interest,
compounded quarterly. Deposits will be made at the end of each quarter.
00
E₂
How much money does he need to deposit into the annuity each quarter
for the annuity to have a total value of $72,000 after 14 years?
▷
4
Do not round intermediate computations, and round your final answer to
the nearest cent. If necessary, refer to the list of financial formulas.
$
X
S
Transcribed Image Text:Joe plans to set aside money for his young daughter's college tuition. He
will deposit money in an ordinary annuity that earns 4.8% interest,
compounded quarterly. Deposits will be made at the end of each quarter.
00
E₂
How much money does he need to deposit into the annuity each quarter
for the annuity to have a total value of $72,000 after 14 years?
▷
4
Do not round intermediate computations, and round your final answer to
the nearest cent. If necessary, refer to the list of financial formulas.
$
X
S
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