For her daughter's university education, Carla Hackl has invested an inheritance in a fund paying 9.2% compounded quarterly. If ordinary annuity payments of $4750.00 per month are to be made out of the fund for 5 years and the annuity begins 7.75 years from now, how much was the inheritance?

Question

Quizplus · Accepted Answer

The Answer is PMT = 4750, i = 0.092 ÷ 4 = 0.023, n = 5 × 12 = 60, c =

PMT = 4750, i = 0.092 ÷ 4 = 0.023, n = 5 × 12 = 60, c = = p = - 1 = 0.0076083 The amount in the fund 7.75 years from now (annuity begins): = 4750.00 = 4750.00(48.0273124) = $228 129.73 Today's balance: PV = 228129.73 = $112 729.41

=

p =

- 1 = 0.0076083
The amount in the fund 7.75 years from now (annuity begins): PMT = 4750, i = 0.092 ÷ 4 = 0.023, n = 5 × 12 = 60, c = = p = - 1 = 0.0076083 The amount in the fund 7.75 years from now (annuity begins): = 4750.00 = 4750.00(48.0273124) = $228 129.73 Today's balance: PV = 228129.73 = $112 729.41

= 4750.00

= 4750.00(48.0273124) = $228 129.73
Today's balance:
PV = 228129.73 PMT = 4750, i = 0.092 ÷ 4 = 0.023, n = 5 × 12 = 60, c = = p = - 1 = 0.0076083 The amount in the fund 7.75 years from now (annuity begins): = 4750.00 = 4750.00(48.0273124) = $228 129.73 Today's balance: PV = 228129.73 = $112 729.41

= $112 729.41

For Her Daughter's University Education, Carla Hackl Has Invested an Inheritance