Question
The parent's of 5-YEAR OLD GIRL WANT to save money for college tuition when she grows up by making monthly deposits in a savings account
The parent's of 5-YEAR OLD GIRL WANT to save money for college tuition when she grows up by making monthly deposits in a savings account which pays 8% compounded quarterly. the parents will start making deposits on their daughter's 5th birthday until her 22nd birthday when she graduates from college. The tuition is estimated to cost $40000per year over 4 years, paid annually starting when the daughter enters college on her 18th birthday. (a) calculate the required months deposit amount. (b) Calculatre the balance "Bn" snd "In" at the daughter's 18 th birthday (c) If the interest rate was 8/% compounded quarterly without inter period compounding, what would be the required monthly deposit amount?
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