Question
a). Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute
a). Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 8%, compounded monthly, if they want the balance to be $180,000 at the end of 18 years?
Solve the problem. (Round your answer to the nearest cent.) $
b). Jane Adele deposits $1,100 in an account at the beginning of each 3-month period for 10 years. If the account pays interest at the rate of 12%, compounded quarterly, how much will she have in her account after 10 years?
Solve the problem. (Round your answer to the nearest cent.) $
c). A company wants to have $60,000 at the beginning of each 6-month period for the next 4 1/2. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.17%, compounded semiannually?
Solve the problem. (Round your answer to the nearest cent.)
d). As the contestant with the longest winning streak in the history of Jeopardy, Ken Jennings won more than $2.5 million. Suppose he invested $1.8 million in an ordinary annuity that earned 8.4%, compounded monthly. How much would he receive at the end of each month for the next 25 years?
Solve the problem.
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