Question
Answer the question below: 2) a.) What lump sum amount must be deposited into a college savings fund so that it will provide you with
Answer the question below:
2)
a.) What lump sum amount must be deposited into a college savings fund so that it will provide you with $10,000 every 3 months for the next 4 years? Assume the fund is an ordinary annuity with an interest rate of 2.5% compounded quarterly - $151,810.52 - $130,550.03 - $37,619.74 - $113,745.08
b.) The present value of a deferred annuity that compounds interest monthly is given by the equation: 8417.77 = 500((1.094)^24) ((1 (1.094)^18)/0.094) For how long was the annuity deferred? - 18 months - 24 months - 6 months - 42 months - 1.5 months - 2 months - 9.4 months
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