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Mr and Mrs

Question 92

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Mr. and Mrs. Friedrich have just opened a Registered Education Savings Plan (RESP) for their daughter. They want the plan to pay $3000 at the beginning of each half year for four years, starting nine years from now when their daughter will enter college or university. What semiannual contributions, including one today, must they make for the next nine years if the RESP earns 8.25% compounded semiannually?

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