E
Future value;
solving for
annuities and
single amount
LO LO
Parents want to accumulate $ to be used for their child's college education. The parents would like to have
the amount available on December Assume that the funds will accumulate in an account paying
interest compounded annually.
Required:
Answer each of the following independent questions.
If they were to deposit a single amount, how much would they have to invest on December
If they were to make five equal deposits on each December beginning on December what is the
required amount of each deposit?
If they were to make five equal deposits on each December beginning on December what is the
required amount of each deposit?
