Suppose your parents have decided that after your graduation at the end of the year they would start to save money to help pay for your younger sister to attend University to study Food Process Engineering. They plan to save money for 5 years before she starts college and to save during her university years. They plan to contribute GH¢4,000 per year at the start of each of her 4 university years. Your parents would thus make monthly payments for 8 years, 5 year prior to and 3 during your sister's university education. The monthly interest rate earned on their savings is 0.45%. How much must the monthly savings be under this condition?

Suppose your parents have decided that after your graduation at the end of the year they would start to save money to help pay for your younger sister to attend University to study Food Process Engineering. They plan to save money for 5 years before she starts college and to save during her university years. They plan to contribute GH¢4,000 per year at the start of each of her 4 university years. Your parents would thus make monthly payments for 8 years, 5 year prior to and 3 during your sister's university education. The monthly interest rate earned on their savings is 0.45%. How much must the monthly savings be under this condition?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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