18. Ms. Smith has two grandchildren, Adam and Evelyn. Adam will be enrolling in college...
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18. Ms. Smith has two grandchildren, Adam and Evelyn. Adam will be enrolling in college on September 1, 2020, and Evelyn will be enrolling in college on September 1, 2022. Ms. Smith wishes to give both Adam and Evelyn 1250 at the beginning of each of their four years of college. Ms. Smith will fund these payments by making 7 level annual deposits of P into an account earning an effective interest rate of 9%, with the first deposit on September 1, 2013. Determine the value of P. [Hint: rearrange cash flow to form different annuities, also starting at different times]
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