monthly a fixed amount in an interest bearing account. It is estimated that the cost of...

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monthly a fixed amount in an interest bearing account. It is estimated that the cost of attending a private school will be $20,000 in 14 years, It is also estimated that it will increase by 10%overthe subsequent3years (total of4 years in high-school). How much must you deposit monthly to be able to pay for these expenses. Assume a 6% annual interest rate with quarterly compounding. Your last deposit into savings is in year 14 and your first payment to the private high-school is in year 14. How much must you deposit monthly over the next 14 years to cover the cost of tuition? 000.147

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ution Montl 4Fiwoled ttol fte cost of atte-Jug a private Schoo/ will bc 0,000 in 147x Aoul needed fte lu yeas20o0 mon t 2o000 4 16 loo 2000o 0 00517 167 I o0517 005 167 00517 848473- 0.9949- 9484.73 x 0.0051 = χ o.5736 χ 2 43.27 o. 573 6 $ 75.44

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