John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. They expect their investment account to earn 9%. How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?
A) $1,965.21
B) $2,068.64
C) $2,177.51
D) $2,292.12
E) $2,412.76

Question

Quizplus · Accepted Answer

The Answer of John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. They expect their investment account to earn 9%. How large must the annual payments at t = 5, 6, and 7 be to cover Ellen's anticipated college costs?
A) $1,965.21
B) $2,068.64
C) $2,177.51
D) $2,292.12
E) $2,412.76

John and Daphne Are Saving for Their Daughter Ellen's College