Multiple Choice
John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. They expect their investment account to earn 9%. How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?
A) $1,965.21
B) $2,068.64
C) $2,177.51
D) $2,292.12
E) $2,412.76
Correct Answer:
Verified
Correct Answer:
Verified
Q4: You agree to make 24 deposits of
Q14: Your uncle has $375,000 and wants to
Q17: Some of the cash flows shown on
Q34: Suppose you deposited $5,000 in a bank
Q36: You want to buy a new ski
Q51: Steve and Ed are cousins who were
Q81: What is the PV of an annuity
Q108: You are offered a chance to buy
Q143: Some of the cash flows shown on
Q158: Suppose you borrowed $12,000 at a rate