In D Question 9 A family plans to send their child to college 15 years from now. They anticipate having to make 4 equal

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In D Question 9 A Family Plans To Send Their Child To College 15 Years From Now They Anticipate Having To Make 4 Equal 1 (60.51 KiB) Viewed 13 times

In D Question 9 A family plans to send their child to college 15 years from now. They anticipate having to make 4 equal annual tuition payments in the amount of 26 thousand each, starting at the end of year 15. 1 pts They plan to put aside equal annual amounts into an investment account starting immediately, and continuing these contributions until one year before year 15. If they expect to earn 7% per year in the account, what must be the size of each annual payment to their savings account? Hint: Find the present value of the tuition payments in year (15-1), then find the investment contribution amount such that the future value in year (15-1) is equal to the present value of the tuition. Hint2: Alternatively, treating contributions as negative outflows, and tuition payments as positive inflows, find contribution amount such that the present value of everything is zero. Question 10 1 pts A client is planning to invest $63 thousand at the end of this year into an investment account. He tells you that he plans to retire in 24 years, and expects to have 401 thousand in that account at that time. What rate of return is he expecting to earn, assuming no withdrawals or further contributions to that account? Enter answer in percents, accurate to two decimal places.