You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $11,500 tuition payment is due in six months. After that, the same payment is due every six months until you have made a total of eight payments. The college offers a bank account that allows you to withdraw money every six months and has a fixed APR of 4.4% (with semiannual compounding) guaranteed to remain the same over the next four years. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this account, leaving the account empty when the last payment is made? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount of money you must deposit today is $ ______(Round to the nearest cent.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
icon
Related questions
Question
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $11,500 tuition payment is due in six months. After that, the same payment is due every six months until you have made a total of eight payments. The college offers a bank account that allows you to withdraw money every six months and has a fixed APR of 4.4% (with semiannual compounding) guaranteed to remain the same over the next four years. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this account, leaving the account empty when the last payment is made? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount of money you must deposit today is $ ______(Round to the nearest cent.)
You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $11,500 tuition
payment is due in six months. After that, the same payment is due every six months until you have made a total of eight payments. The college offers a bank
account that allows you to withdraw money every six months and has a fixed APR of 4.4% (with semiannual compounding) guaranteed to remain the same over the
next four years.. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this
account, leaving the account empty when the last payment is made? (Note: Be careful not to round any intermediate steps less than six decimal places.)
The amount of money you must deposit today is $
(Round to the nearest cent.)
Transcribed Image Text:You have been accepted into college. The college guarantees that your tuition will not increase for the four years you attend college. The first $11,500 tuition payment is due in six months. After that, the same payment is due every six months until you have made a total of eight payments. The college offers a bank account that allows you to withdraw money every six months and has a fixed APR of 4.4% (with semiannual compounding) guaranteed to remain the same over the next four years.. How much money must you deposit today if you intend to make no further deposits and would like to make all the tuition payments from this account, leaving the account empty when the last payment is made? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount of money you must deposit today is $ (Round to the nearest cent.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Annuity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT