document.write( "Question 1011421: 4. A client has asked for your advice on setting up two university education trust funds for his two children ages 4 and 6 respectively. He feels that an accumulated trust of $10,000 for each child on their 18th birthdays will be sufficient to provide a good education.\r
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Algebra.Com's Answer #627165 by MathTherapy(10551) $\"\"$ $\"About$

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4. A client has asked for your advice on setting up two university education trust funds for his two children ages 4 and 6 respectively. He feels that an accumulated trust of $10,000 for each child on their 18th birthdays will be sufficient to provide a good education.\r
\n" ); document.write( "\n" ); document.write( "a) What amount must be placed in each trust account annually in advance to produce the desired trust, assuming that the deposits bear interest at 7% compounded annually?
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Amount each year for 4 year-old:  for 14 years 
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document.write( "Amount each year for 6 year-old:  for 12 years\r
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document.write( "This is the formula I used. It's set up in MS Excel. It may seem like 2 different formulae, but they're the same. 
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document.write( "It's just that one is a little simpler, if I may say so.
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document.write( ", or , where:
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document.write( "    =  ANNUAL deposit
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document.write( "   =  FUTURE VALUE of an ordinary annuity (end-of-period deposit)
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document.write( "      =  ANNUAL INTEREST rate
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document.write( "      =  NUMBER of COMPOUNDING periods, per annum
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document.write( "      =  TIME (in years) \n" );
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