Question: Stephen has learned that his great aunt intends to give him
Stephen has learned that his great-aunt intends to give him $4,000 each year he is studying at university. Tuition must be paid in advance, so Stephen would like to receive his payments at the beginning of each school year. How much will his great-aunt have to invest today at 7 percent, to make the four annual (start-of-year) payments? Assume that Stephen will be starting school in four years.
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