Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $150,000 in 18 years. If they are able to earn 6% per annum, how much must be deposited at the beginning of each of the next 18 years to fund the education? Options: $4,443 $4,579 $4,853 $8,333.

Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $150,000 in 18 years. If they are able to earn 6% per annum, how much must be deposited at the beginning of each of the next 18 years to fund the education? Options: $4,443 $4,579 $4,853 $8,333.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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Question

Dd.

Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $150,000 in 18
years.
If they are able to earn 6% per annum, how much must be deposited at the beginning of each of the next 18 years to fund
the education?
Options:
$4,443
$4,579
$4,853
$8,333.

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