math help plz!
posted by Thara! .
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.
This site may help you.
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
did u look it up???
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
the answer is 45 done this in year 5 mate. simples