Answered: To create a college fund, a parent…

To create a college fund, a parent makes a sequence of 20 yearly deposits of $4000 each year in a saving account, on which interest is compounded annually at 2.8%. Find the amount of annuity.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.17E

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To create a college fund, a parent makes a sequence of 20 yearly deposits of $4000 each year in a saving account, on which interest is compounded annually at 2.8%. Find the amount of annuity.

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