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):
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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.)
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A:
size of each installment =  = $
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