MaeWolfe
25.12.2020 •
Mathematics
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Ответ:
$160,463 will be available for daughter college expense o her 18th birthday.
Explanation:
According to the Given Condition;
Deposit Amount = $2,400
Rate of Return = 9%
Size of Deposit increase every year at 7%
Hence the Growing Annuity is
Annuity =![2400 * \frac{1}{0.09 - 0.07} * [1 - (\frac{1+0.07}{1+0.09})^{18} ] (1.09)^{18}](/tpl/images/0626/5252/21254.png)
Annuity = $160,463
Thus, $160,463 will be available for daughter college expense o her 18th birthday.