Homework Help: math help plz!

Posted by Thara! on Saturday, April 10, 2010 at 10:13pm.

When Cody's son was born, he put $4,500 in an investment that earns 7% compounded semi-annually. This investment will mature when his son turns 18 and will go straight into an annuity at 4.75% compounded and paying out quarterly at the end of the period. The investment was to help pay for his 4-years of college. Find the size of these quarterly payments received by Cody's son during his college stay.

math help plz! - Ms. Sue, Saturday, April 10, 2010 at 10:19pm
This site may help you.

http://www.1728.com/annuity2.htm
math help plz! - Reiny, Saturday, April 10, 2010 at 10:37pm
at age 18:
the amount of the investment = the present value of the annuity
4500(1.035)^36 = x(1 - 1.011875^-16)/.011875
15526.20 = x(14.4938741)
x = 15526.20/14.4938741 = 1071.22
math help plz! - nicole, Saturday, April 10, 2010 at 11:05pm
did u look it up???
math help plz! - Thara!, Saturday, April 10, 2010 at 11:10pm
thnx for the help.it relly helps.thnc for the site ms.sue.its honestly is useful and thnx reiny now it is easier for me to do the otha question.thnx to who helped me!:D

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