Question
Alejandra's grandparents set up an account for her college fund. They will invest $6,900.00 paid at the end of each quarter for 18 years that
Alejandra's grandparents set up an account for her college fund. They will invest $6,900.00 paid at the end of each quarter for 18 years that has an interest rate of 4.2%, compounded quarterly. After 10 years the grandparents sold their business and made a lump sum deposit to the annuity of $47,000.00 in addition to the continuation of 8 years of regular deposits. a) How much is in the account at the end of the 18 years? (Round to 2 decimal places.) b) How much was deposited into the annuity? (Round to 2 decimal places.) Once the annuity matured, Alejandra decided to withdraw from the annuity quarterly payments for 4 years paid at the end of each quarter. If the interest rate did not change, what would the quarterly payment amount be? c) The quarterly payments are (Round to 2 decimal places.) d) What will the total amount that will be paid? (Round to 2 decimal places.)
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