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You are saving for your child's education since you did not participate in the Texas Tomorrow...

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Finance

You are saving for your child's education since you did notparticipate in the Texas Tomorrow Fund. Your child is five-year-oldtoday. Starting next quarter, you will deposit $300 every quarteruntil you child turns 17. Your last payment will be on his 17thyear. You can to withdraw $X very year starting his 18th birthdayfor 4 years, first payment on his 18th birthday. Assuming you haveinvesting your money in an account is provides 12% return and theinterest is compounded daily (365 days).

a. $13,826.63

b. $11,998.78

c. $10,608.75

d. $8,982.45

e. $5,782.88

Answer & Explanation Solved by verified expert
3.9 Ratings (689 Votes)
EAR 1 stated rateo of compounding periods no ofcompounding periods 1 100Effective Annual Rate 1123651003651100Effective Annual Rate 127475We need to convert    See Answer
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Transcribed Image Text

You are saving for your child's education since you did notparticipate in the Texas Tomorrow Fund. Your child is five-year-oldtoday. Starting next quarter, you will deposit $300 every quarteruntil you child turns 17. Your last payment will be on his 17thyear. You can to withdraw $X very year starting his 18th birthdayfor 4 years, first payment on his 18th birthday. Assuming you haveinvesting your money in an account is provides 12% return and theinterest is compounded daily (365 days).a. $13,826.63b. $11,998.78c. $10,608.75d. $8,982.45e. $5,782.88

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