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On the day his baby is born, a father decides to establish a savings account for...

On the day his baby is born, a father decides to establish a savings account for the child’s college education. Any money that is put into the account will earn an interest rate of 9% compounded annually. The father will make a series of annual deposits in equal amounts on each of his child´s birthdays from the 1st through the 18th so that the child can make four annual withdrawals from the account in the amount of $35,000 on each birthday. Assuming that the first withdrawal will be made on the child’s 18th birthday, calculate the required annual deposit

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Answer #1

FV of. PV of withdrawl deposits posito at beginning at end of 18 Let A be deposits -> a fetij8 - 11 35,000/ Citi - Toiritish

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