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Starting three months after her grandson​ Robin's birth, Mrs. Devine made deposits of $110 into a...

Starting three months after her grandson​ Robin's birth, Mrs. Devine made deposits of $110 into a trust fund every three months until Robin was eighteen years old. The trust fund provides for equal withdrawals at the end of each quarter for three ​years, beginning three months after the last deposit. If interest is 6.19% compounded quarterly​, How much will Robin receive every three months​?

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Answer #1

Calculating Future Value of Deposits,

using TVM Calculation,

FV = [PV = 0, PMT = 110, N = 72, I = 0.0619/4]

FV = $14,367.45

Quarterly Withdrawal = 14,367.45(0.0619/4)

Quarterly Withdrawal = $222.34

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