Question

Asked Oct 22, 2019

New parents wish to save for their newborn's education and wish to have $46,000 at the end of 17 years. How much should the parents place at the end of each year into a savings account that earns an annual rate of 5.6% compounded annually? (Round your answers to two decimal places.)

$

How much interest would they earn over the life of the account?

$

Determine the value of the fund after 10 years.

$

How much interest was earned during the 10th year?

$

Step 1

**Computation of yearly payment:**

Hence, the yearly payment is ** -$1,682.02**.

Step 2

**Formula for the computation of yearly payment:**

Step 3

**Computation of interest:**

Hence, the interest is **$17,...**

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