Posted by Thara! on Saturday, April 10, 2010 at 8:13pm.
When Raisel's son was born, she put $7,500 in an investment that earns 5.25% compounded quarterly. This investment will mature when her son turns 18 and will go straight into an annuity at 7.25% compounded and paying out monthly at the end of the period. The investment was to help pay for his 4years of college. Find the size of these monthly payments received by Raisel's son during his college stay.

Annuity!  Reiny, Saturday, April 10, 2010 at 10:43pm
just change the appropriate numbers in the posting
http://www.jiskha.com/display.cgi?id=1270952022
They are the same question.

Annuity!  Thara!, Saturday, April 10, 2010 at 11:00pm
at age 18:
the amount of the investment = the present value of the annuity
6500(1.019375)^72 = x(10.0725/12^48)/(0.0450/4)
19,177.84 = x(41.55860953)
x=461.46
is dis correct!!!

Annuity!  Thara!, Saturday, April 10, 2010 at 11:01pm
oh no...i mixed the queston
sry...ill try again!! oops

Annuity!  Thara!, Saturday, April 10, 2010 at 11:03pm
7500(1.013125)^72 = x(1.0725/12^48)/(.0725/12
19177.84 = x(41.55860953)
461.46 = x
is dis correct??

Annuity!  Reiny, Saturday, April 10, 2010 at 11:19pm
I got the same result to the penny!
good job!
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