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4.4. Please show work. Thanks in advance. Bob decided to start a university fund for his son. Bob started depositing a series of equal, semiannual
4.4. Please show work. Thanks in advance.
Bob decided to start a university fund for his son. Bob started depositing a series of equal, semiannual cash flows of $1, 500 on 3 July 2011. He will make the last deposit on 3 July 2031. Joe, a friend of Bob's decides to begin a university fund for his daughter. He wants to accumulate the same amount of money on 3 July 2031 as Bob will have accumulated at that time. Joe decides to deposit $40,000 on 3 July 2016. Will Joe's deposit be enough? If not, how much should he deposit? Use a nominal interest of 7% with semi-annual compounding on all accountsStep by Step Solution
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