Thursday
November 27, 2014

Homework Help: math!

Posted by Thara! on Saturday, April 10, 2010 at 11:12pm.

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 4-years of college. Find the size of these monthly payments received by Raisel's son during his college stay.


at age 18:
the amount of the investment = the present value of the annuity

7500(1.013125)^72 = x(1-.0725/12^-48)/(.0725/12
19177.84 = x(41.55860953)
461.46 = x

is dis correct??

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Annuity! - When Raisel's son was born, she put $7,500 in an investment that ...
math help plz! - When Cody's son was born, he put $4,500 in an investment that ...
Math! plz help! - When Cody's son was born, he put $4,500 in an investment that ...
precalc - A $5000 investment earns 7.2% annual interest, and an $8000 investment...
College Algebra - Investment A: $5,000 invested for 7 years compounded ...
math 20 please check - Jacob is 25 yrs old and hopes to retire by 55. He invests...
Investment interest - Scenario: A client comes to you for investment advice on ...
Math - How to calculate this? 4 year term investment. The investment offers a ...
math/ compounded - Scenario: A client comes to you for investment advice on his...
math - How long will it take for an investment of $13,000 to double if the ...

Search
Members