Question
To save for her college education, starting in 18 years, Janettes parents deposited $3000 at the beginning of every six months into an education fund
To save for her college education, starting in 18 years, Janettes parents deposited $3000 at the beginning of every six months into an education fund earning interest at 4% compounded quarterly. a) How much will be in Janettes education fund when she starts school? (6) b) How much will Janettes parents contribute? (2) c) How much interest will she have earned? (2) d) Janette decides to travel for 2 years before starting school and leaves all of the education fund to collect interest at 5% compounded semi-annually. How much will the fund be worth after the additional 2 years? (4) e) Janette is ready to start school. She will attend college for 3 years. She budgets $10 000 each year for books and tuition. How much will she have left to withdraw at the end of every month if the interest rate at that time will be 6% compounded monthly?
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