SOLUTION: Yumi's grandparents presented her with a gift of $14,000 when she was 11 yr old to be used for her college education. Over the next 6 yr, until she turned 17, Yumi's parents had in

Question 755470: Yumi's grandparents presented her with a gift of $14,000 when she was 11 yr old to be used for her college education. Over the next 6 yr, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 4.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 yr, starting at age 18. If the college fund is expected to earn interest at the rate of 8%/year, compounded annually, what will be the size of each installment? (Round your answer to the nearest cent.)
$
Answer by reviewermath(1029) (Show Source): You can put this solution on YOUR website!
Q:
Yumi's grandparents presented her with a gift of $14,000 when she was 11 yr old to be used for her college education. Over the next 6 yr, until she turned 17, Yumi's parents had invested her money in a tax-free account that had yielded interest at the rate of 4.5%/year compounded monthly. Upon turning 17, Yumi now plans to withdraw her funds in equal annual installments over the next 4 yr, starting at age 18. If the college fund is expected to earn interest at the rate of 8%/year, compounded annually, what will be the size of each installment? (Round your answer to the nearest cent.)
------------------------------------------------------------------------------
A:
size of each installment = = $
RELATED QUESTIONS
Yumi's grandparents presented her with a gift of $21,000 when she was 9 years old to be... (answered by Theo)

Yumi's grandparents presented her with a gift of $19,000 when she was 9 years old to be... (answered by Theo)

Yumi's grandparents presented her with a gift of $19,000 when she was 8 years old to be... (answered by Theo)

Yumi's grandparents presented her with a gift of $18,000 when she was 10 years old to be... (answered by Theo)

A father is planning a savings program to put his daughter through college. His daughter (answered by Theo)

I am a mother of a 14 yr old and she has fallen behind in math and i am unable to help... (answered by Earlsdon)

lianne spent 2/5 of her savings to buy a gift for her mother. if her saving was 600, how... (answered by Cromlix)

Jenna�s parents give her a gift of $15,000 to put in a college savings account for her... (answered by Theo)

Susan has a $100 gift card to her favorite restaurant. Each day, she uses her gift card... (answered by Theo)